what is repos?


what is repos?

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Ahmed Ragab 4 months 2021-06-01T17:20:06+00:00 1 Answer 23 views 0

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    A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day at a slightly higher price. That small difference in price is the implicit overnight interest rate. Repos are typically used to raise short-term capital. They are also a common tool of central bank open market operations.

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