rediscount

Definition

The rediscount is an operation that is for a central bank to buy an effect before maturity to a bank or a financial institution which has already discounted, making the proceeds of the debt, net of discount rate official, called the rediscount rate and set by the central bank.
Rediscounting is used by banks to revert to liquidity with the central bank.

Reassessing an effect

A bank that needs liquidity can negotiate this effect with the Rediscount and Guarantee Institute .

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