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dollar reverse repurchase agreement

a financial transaction that is similar to a reverse repurchase agreement in which a dealer, in effect, loans money by buying a security and agreeing to sell it back to the customer at a higher price at a later date. In a dollar reverse repurchase agreement (dollar reverse repo) the dealer does not sell back the exact same security but another, substantially identical security. See repurchase agreement.

Source : U.S. Department of the Treasury

Language : English

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