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Jun 21, 2022 10:35 PM

RRPs - Reverse Repurchase Agreements 

Overnight Reverse Repurchase Agreements: Treasury Securities Sold by the Federal Reserve in the Temporary Open Market OperationsFRED

Description

An increase in the reverse repo rate will decrease the money supply - ceteris parabis.

Commercial bank incentives to hide their funds with the RBI, decrease the supply of
money in the markets.

There is a limited leak from RRP Pool back and forth, but the overall trend remains
higher.

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