Bank of Ghana adopts new guidelines on repo agreements

The Bank of Ghana has adopted a set of guidelines to help facilitate the short-term trading of government securities between dealers as well as investors.

Governor of the Bank of Ghana, Dr. Ernest Addison, who announced the new Guidelines for Repurchase Agreements at ongoing World Bank/IMF Annual Meetings in Washington DC, USA, said it will help facilitate the flow of cash and securities in financial markets.

Typically, a repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day at a slightly higher price

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