DMD Circular Letter No. 12: Auction of Central Bank Repo

Bangladesh Bank (Central Bank of Bangladesh) Directorate of Money Management Department Motijheel, Dhaka-1000 Bangladesh. DMD Circular Letter No. 12 Date: ------------------ Managing Director / Chief Executive Officer All Scheduled Banks and Financial Institutions operating in Bangladesh.

Dear Sir,

Regarding the Auction of Repo Agreements with Bangladesh Bank.

Reference is drawn to DMD Circular Letter No. 09 issued on July 01, 2024, on the above-mentioned subject.

2. In order to make the Overnight Call Money Market, conducted for all scheduled banks and financial institutions operating in Bangladesh under the existing monetary policy framework, more efficient, the aforementioned circular letter is amended as follows:

a) Instead of the currently prevalent two days of repo auctions per week, repo (7 days, 14 days, and 28 days tenor) auctions will be held once a week on Tuesday, and if Tuesday is a holiday, on the next working day;

b) Overnight (1-day) repo auction facilities will be available on the Cash Deposit Ratio (CDR) compliance days for the purpose of Cash Reserve Requirement (CRR); and

c) The existing daily Liquidity Adjustment Facility (LAF) and Liquidity Adjustment Window (LAW) facilities will continue.

3. These instructions will be effective from November 01, 2024.

Yours faithfully,

(Istiak Hossain) Director (DMD) Phone: 9530131 E-mail: istiak.hossain@bb.org.bd

05 Kartik 1431 21 October 2024