Banks and non-bank financial institutions (NBFIs) can now collect cash from the central bank through special repurchase agreement (repo) for one year, as per central bank circular issued on the day. Typically, the BB supports cash to the banks and NBFIs for regular repo for one to 28 days. The special repo rate will be determined at auction by the auction committee. The interest rate of the special repo will not be fixed because it was a long term repo but the rate of special repo would not vary significantly from the regular repo, he added. Banks would get more time to repay, which was the advantage of the special repo, they also said.

Source: Dhaka Tribune May 13, 2020 15:45 UTC