matched sale-purchase agreement

matched sale-purchase agreement definition - finance
The outright sale by the Federal Reserve of securities for immediate delivery to a dealer or foreign central bank. The sale includes an agreement to buy the securities back on a specific date, typically within seven days, at the same price. Matched sale-purchase agreements have the effect of withdrawing reserves on a temporary basis. They are the opposite of repurchase agreements, which put reserves, or more money, into the economy.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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