A repurchase agreement (repo) is offered via discriminatory auction. In a reverse repo, the Bank of Israel buys tradable government bonds and makam, and sells them back at the end of the transaction term. The selling price is based on the purchase price plus interest.
Repo auctions are open to banking corporations and other supervised entities such as provident funds, insurance companies, pension funds, and mutual funds.
Since October 2009, in light of large liquidity surpluses which built up in the system, Bank of Israel repo auctions have been halted until further notice.