rediscount
/riːˈdɪskaʊnt/
verb
- To discount a financial instrument (such as a bill of exchange or promissory note) again, typically by a central bank or financial institution.
- The company's treasurer decided to rediscount the bills to meet short-term funding needs.
- When a bank needs cash, it can rediscount its customers' promissory notes with the Federal Reserve.
- The central bank agreed to rediscount the commercial paper to provide liquidity to the bank.
noun
- The act or process of discounting a financial instrument again, or the rate at which this is done.
- The bank applied for a rediscount of its loan portfolio to improve its cash reserves.
- The rediscount rate influences how much banks can borrow from the central bank.
- Changes in the rediscount policy can affect the entire economy.