What is the Repo rate and how does it affect markets?

Bank sign

What is Repo rate and what happened in the U.S. money markets recently Definition: Repo is short for repurchase or repossession. It is the discount rate at which central banks repurchase government securities from the commercial banks. It depends on the level of money supply it decides to maintain in the country’s monetary system. Expanding money supply To expand the money supply temporarily, the central bank will decreases the ‘repo rate’ so banks can then swap their holdings of government securities for cash. Reducing money supply To reduce the money…

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Sterling one pound – a brief history

One pound coin £1

Pound coin history A pound coin originally weighed one troy pound of sterling silver. This gave the currency the name ‘pound sterling’ (sterling silver plus the pound). Sterling silver is a mixed metal made up of at least 92.5% real silver. 240 pence in one ‘old’ pound One pound sterling was originally divided into 240 sterling pence. This was because there were 240 penny-weights in a troy pound.  So, a single one pound coin weighed one troy pound and a single 1 penny coin weighed one penny weight. Until decimalisation…

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