Purchase and Resale Agreements (PRAs)
An arrangement between the Bank of Canada and dealers whereby the Bank buys treasuries from a dealer, and the dealer agrees to repurchase the treasuries the next day. Investopedia Says:
In a PRA, the Bank of Canada is essentially lending money to the dealer at the midpoint of the overnight operating band rate in order to increase the dealer's liquidity. Related Terms:
Open Market Operations
Overnight Rate
Special Purchase and Resale Agreements - SPRAs |