Purchase and Resale Agreement(redirected from Purchase and Re-Sale Agreements)
Purchase and Resale Agreement
An agreement between the Bank of Canada and a dealer on an exchange in which the Bank buys Canadian Treasury securities from the dealer and the dealer agrees to buy the same securities back the following day. A PRA provides liquidity to a dealer, which in turn provides liquidity to market trading. See also: Murabaha, Double Sale.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved