DHAKA, Sept 06, 2022 (BSS) - Bangladesh Bank (BB) has scrapped the 360-day
special repo facility due to the improvement in the Coronavirus situation and
a lack of demand for the borrowing tool.

The central bank introduced the special repo on May 13, 2020 in order to
implement the stimulus packages and to ensure smooth liquidity management, as
per a BB circular issued today.

A repurchase agreement, or repo, is a short-term agreement to sell securities
in order to buy them back at a slightly higher price.

Under the special repo, banks and financial institutions were able to borrow
against additional treasury bills and bonds of statutory deposit rate with
the BB.