English version

repurchase agreement

From Longman Business Dictionary
Related topics: Finance
repurchase agreementreˈpurchase aˌgreement (also repo agreement informal) FINANCE an occasion when the holder of particular bonds sells them and agrees to buy them back on a specific date in the future at a fixed price. CENTRAL BANKS use repos to control the MONEY SUPPLY (=the amount of money in the economy) by buying back government bonds for specific periods of time SYN SALE AND REPURCHASE AGREEMENTWhen it wants to inject cash into the banking system, the Bundesbank enters repurchase agreements. It takes securities from banks and gives them cash that they can invest or lend to clients. see also repo1 agreement
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