69 sats \ 0 replies \ @jp OP 18 May 2022 \ parent \ on: Reverse repo operation hits all time high... Again bitcoin
RROs are the banks giving back money to the Fed because the banks have no other places in th economy to deploy/loan the funds out to.
The bank will give money back to the Fed, effectively reducing the money supply (temporarily)
Here is a basic summary of a RRO: https://www.youtube.com/watch?v=H_wwzyAGPZw