Bangladesh Bank to operate REPO, call money market on limited scale

The Bangladesh Bank on Tuesday said that it would operate REPO (repurchase agreement) and call money market on a limited scale during the ongoing government holidays announced to limit public movement to stop the spread of coronavirus (COVID-19).

The decision of the central bank came after a day it announced to run the Bangladesh Automated Clearing House (BACH) during the government announced holidays.

The BB’s BACH facilitates inter-bank cheque- and online-based transactions.

A BB official said that a number of banks were in need of money as the BACH came to operate partially from Monday.

REPO and call money market allow banks to fulfil their short-term cash requirements by the way of borrowing.

In the BB circular issued on Tuesday, interested banks were asked to submit tender for REPO within 12:30pm every working day.

The banks, which would participate in the call money market, were also asked to submit transaction detail by 12:30pm to the BB’s debt management department. (Source: New Age)