Definition: Repurchase agreement (Repo)

Category: Balance of Payments, IMF

Arrangement involving the sale of securities at a specified price with a commitment to repurchase the same or similar securities at a fixed price on a specified future date (usually very short-term, e.g., overnight or one day) or on a date subject to the discretion of the purchaser. http://ec.europa.eu/eurostat/ramon/statmanuals/files/BoP_Manual_Fifth_Edition_EN.pdf