merry-go-round

(banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance, the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark.

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