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It is used in resolving any short term cash shortages during period of economic instability or from any other form of stress caused by forces beyond their control. Repo is a form of short term borrowing for dealers in government securities. For the party selling the security (and agreeing to repurchase it in the future) …

It is used in resolving any short term cash shortages during period of economic instability or from any other form of stress caused by forces beyond their control. Repo is a form of short term borrowing for dealers in government securities. For the party selling the security (and agreeing to repurchase it in the future) it is repo; for the party on other end of transaction (buying the security and agreeing to sell in future) it is reverse repo.

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