Temporary transaction
Fixed-term transactions are automatic counter-trades in the area of European securities trading . The ECB only buys securities from the commercial banks if the commercial banks automatically buy them back after a specified period .
An example of this are repo transactions . These are open market transactions for a time (hence the term “fixed-term transactions”) because the credit institutions are only provided with central bank money ( sight deposits or cash) for a fixed period of time . One speaks of repurchase agreements because the Eurosystem buys securities with the proviso that the credit institutions buy back the securities after a certain period of time (for example 28 days).