DMD Circular Letter No. 02: Extension of Bidding Time for Reverse Repo

Bangladesh Bank

DMD Circular Letter No. 02

Date: --....................................

To: Chief Executive/Managing Director All Scheduled Banks and Financial Institutions operating in Bangladesh

Dear Sir,

Subject: Use of Treasury Bills for Repurchase Agreements (Repo) and Assessment of Script Value for Treasury Bills and Additional Liquidity with Bangladesh Bank for Short-term Investment: In the context of Reverse Repo (Reverse Repo) arrangements.

Reference is invited to Circular Letter No. DMD-06/2010 dated 14.10.2010 of Bangladesh Bank on the above-mentioned subject.

In light of the redefinition of the procedure and result announcement time for submitting bids for Reverse Repo with Bangladesh Bank by scheduled banks and financial institutions, the instructions specified in clauses (b) and (b)(2) and (b)(3) of the aforementioned circular letter shall be replaced as follows:

(b) Investments in liquidity with Bangladesh Bank under the Reverse Repo (Reverse Repo) arrangement shall be for a tenor of 1 day (overnight); however, if the maturity falls on a weekly holiday/government holiday, this tenor shall be extended to the next working day. Bids for Reverse Repo (Reverse Repo) contracts must be submitted by the responsible officers of the respective institutions in the "Bid" module of Bangladesh Bank's e-GP system by 2:00 PM. The result of the auction will be announced in the e-GP module at 3:00 PM on the same working day. The liquidity against successful bids will be credited to the Tk account operated by the successful bidder institution with Bangladesh Bank, and repayment including interest upon maturity will be effected by debit to the same account.

(b)(2). The time for submission of bids for Reverse Repo with Bangladesh Bank by scheduled banks and financial institutions has been rescheduled from 2:00 PM to 3:00 PM on the same working day.

(b)(3). The time schedule for announcing the results of the Reverse Repo, as specified in Clause 5 of Annexure-1 of Circular No. FRTEMD(PDS)-127/2003-358 dated 26.04.2003, has been redefined from 11:00 AM to 3:00 PM.

Other instructions specified in the aforementioned circular letter shall remain unchanged.

These instructions shall take effect immediately.

Yours faithfully,

(Bishnu Pada Saha) General Manager Phone: 9530131 Email: bishnupada.saha@bb.org.bd

18 Agrahayan, 1421 Bang 02 December, 2014 AD E204..., 2014 AD Christian Era.