A procedure related to the application of variation margins, implying that if the value, as regularly measured, of the underlying assets falls below a certain level, central banks may require counterparties to supply additional assets (or cash). Similarly, if the value of the underlying assets, following their revaluation, were to exceed the amount owed by the
counterparties plus the variation margin, the central bank returns excess assets (or cash) to the counterparty.
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Counterparty
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