DMD Circular Letter No. 14: Assured Liquidity Support for Primary Dealers

Bangladesh Bank
(Central Bank of Bangladesh) Department of Monetary Management Head Office Motijheel, Dhaka-1000 Bangladesh.

Managing Director / Chief Executive
All Primary Dealer Banks operating in Bangladesh Dear Sir,

Regarding the provision of Liquidity Support to Primary Dealers (LS-PD).

Reference is invited to DMD Circular Letter No. 7 dated December 23, 2021, on the above-mentioned subject. It is informed that, with the aim of maintaining consistency in the interest rate structure in the money market and implementing the full transmission of monetary policy, Bangladesh Bank has taken the following decisions regarding the provision of Assured Liquidity Support (ALS) in favor of Primary Dealer (PD) banks:

a) Treasury bills/bonds purchased by PD banks from primary auctions (issuance/re-issuance) held within 02 months prior to the date of ALS provision, from October 01, 2025, to October 31, 2025, will be considered eligible collateral;

b) Treasury bills/bonds purchased by PD banks from primary auctions (issuance/re-issuance) held within 01 month prior to the date of ALS provision, from November 01, 2025, to November 30, 2025, will be considered eligible collateral; and

c) ALS will not be provided from December 01, 2025.

Yours faithfully,

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

DMD Circular Letter No. 14
Date: 07 Ashwin, 1432
Date: ---------------------
22 September, 2025