"Repo" is short for "sale and repurchase agreement", where one party agrees to sell bonds or other financial instruments to another party, with an agreement to repurchase equivalent securities in the future, under a formal legal agreement. It is widely used in financial markets as an alternative to collateralised lending as it can fulfil the same economic function while offering greater flexibility and better security. Repo is increasingly being used by central banks in their own monetary operations, and can also be important in the development of liquid financial markets in emerging economies. This handbook describes in some detail the structure of repo transactions and the various safeguards which can be put in place to support and protect a repo market. This handbook is also available in Spanish
