Reverse repurchase agreement and Riksbank: Difference between pages

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imported>Doug Williamson
(Expand.)
 
imported>Doug Williamson
(Create the page. Sources: The Treasurer, December 2016, p09 and Riskbank webpage http://www.riksbank.se/en/The-Riksbank/)
 
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(Reverse repo, or RRP).  
The Riksbank is the central bank in Sweden.


A form of secured investing/lending, seen from the perspective of the investor/lender, using an agreement to buy securities at the start of the contract, and to sell them back at a pre-agreed price at a fixed future date.
Its full name is the Sveriges Riksbank (the Central Bank of Sweden).
 
 
The investor/lender invests cash at the start (in exchange for the transfer of pre-agreed securities).
 
At maturity the investor/lender receives their cash back with interest and sells the securities back to the borrower.
 
 
A reverse repo is exactly the same transaction as a Repurchase agreement (repo) but from the perspective of the lender (rather than the perspective of the borrower).
 
It could logically have been called a “re-sale agreement”.




== See also ==
== See also ==
* [[Bilateral repurchase agreement]]
* [[Bank of England]]
* [[Tri-party repurchase agreement]]
* [[Central bank]]
* [[Repurchase agreement]]
* [[euro zone]]
* [[Cash in the new post-crisis world]]
* [[European Central Bank]]
 
* [[Federal Reserve Bank]]
[[Category:Liquidity_management]]

Revision as of 14:18, 11 December 2016

The Riksbank is the central bank in Sweden.

Its full name is the Sveriges Riksbank (the Central Bank of Sweden).


See also