The paper estimates the long run demand for money function in Bangladesh economy using co-integration and Vector Error Correction Modeling (VECM) technique. The co-integration results suggest that though the process of globalization has shown still no significant impact on money demand by the fact that the foreign interest rate is seen statistically not significant, the financial liberalization has important impact reflected in the statistically significant role of domestic interest rate in influencing both M1 and M2 money demand. Estimate of VECMs also reveals the fact that the short run speed of adjustment is moderately influenced by the financial reform measures to establish the long run relation between money balances, income and domestic interest rates. The phenomenon of credit constraint in the context of a developing country has shown no significant role in influencing money demand which may imply that the stage of financial development is getting higher level in the Economy of Bangladesh. The existence of exchange rate depreciation in co-integration relation with expected sign suggests that currency substitution is now effective in the monetary sector and therefore, its impact should be considered effectively in the monetary policy matrix of Bangladesh.