DHAKA, July 1, 2024 (BSS) - The REPO auctions, through which commercial banks borrow funds from the Bangladesh Bank (BB), have been trimmed to two days, instead of five working days a week.

Banks will be able to borrow through repo lending from the central bank only on Monday and Wednesday of every week, as per a BB circular issued today.

If a holiday falls on those days, repo lending will take place on the next working day, it also said.

Besides, the Standing Lending Facility (SLF) and the Standing Deposit Facility (SDF) will continue at prevailing rates on a daily basis, it added.

Banks use repurchase agreements (repo) for short-term borrowing from the central bank. The open-market operations involve the central bank buying and selling government securities to regulate money supply and credit conditions.