Dhaka, Feb. 28 -- The existing repo facilities are being squeezed further as the Bangladesh Bank (BB) is set to phase out its 14-day liquidity window in a move to make banks manage funds more efficiently.

The Debt Management Department of the central bank recently issued guidelines for open-market operation (OMO) by scrapping the 14-day repo facility, which will be effective from May 3.

With the squeeze, commercial banks can now borrow funds from the central bank using repo only for the seven-day- maturity instrument.

But there will be overnight repo-backed borrowing facility for reserve maintenance period (RMP).

The new guidelines also stipulate a 5 per cent haircut on the market value of securities.

Currently, banks can receive liq...