Glossary

General Glossary

R

Rainbow printing 

This is a printing technique that produces images in different colours that gently blend into each other. They are difficult to reproduce and for that reason they are used as a security measure against counterfeiting. Rainbow printing is used on euro banknotes.

Raised ink layer 

A security feature characterised by a palpable raised print on a paper. See intaglio.

Real-time gross settlement system (RTGSS) 

A settlement system in which processing and settlement take place on a transaction-by-transaction basis (without clearing) in real time (continuously). Each of the European Union central banks has an RTGSS, each with its own characteristics that, along with the ECB payment mechanism, make up TARGET, a trans-European payment system for the euro. In the case of Spain, the Spanish RTGSS is the Banco de España Settlement System (SLBE).

Redemption  

Partial or total (payoff) repayment of a debt. For example, when referring to a mortgage it implies the repayment of the loan. In the case of fixed income securities, it is the issuer that returns the capital to the investor.

Reference interest rate 

The interest rate taken as the basis for calculating the interest rate that has to be paid in a financial transaction, usually adding a percentage differential (for example, in mortgage loans it is usual for the Euribor to be used, plus a percentage that varies depending on the offer made by each bank).

Referral value for M3 growth 

Year-on-year M3 growth rate in the medium term, compatible with the maintenance of price stability.

Register 

The printing of several colours with highly adjusted limits. Additionally, it is the printing of elements of an image by exact superimposition on the obverse and reverse of a document. See see-through register.

Registered cheque  

A cheque provided by a bank when their client has no chequebook at that moment.

Reimbursement 

In general, this term is applied to the payment or return of what is owed.

Relief 

See intaglio, raised printing

Renewable credit  

A credit that is automatically renewed upon maturity and therefore comparable to a permanent line of credit.

Renting  

Short or long-term rental of personal property whereby the customer undertakes to pay a fixed monthly income, for a certain period of time, and the supplier undertakes to transfer the use of the property and provide a series of services that include maintenance or technical assistance, insurance policy, etc. A common example of renting is that of vehicles, whereby the rental company is responsible for the insurance policy, periodic revisions and maintenance of the vehicle.

Repurchase agreement 

An agreement whereby the seller of an asset simultaneously obtains the right and the obligation to repurchase it at a set price on a future date or at the request of the other party. These agreements are similar to taking loans with collateral, the difference being that in the case of repurchase agreements, the seller does not retain ownership of the securities. The Eurosystem uses repurchase agreements with a set maturity in its reverse transactions. Repurchase agreements are included in M3 in those cases in which the seller is a Monetary Financial Institution (MFI) and the counterparty a non-MFI euro area resident.

Repurchase operation  

Financial operation in which an institution sells an asset (frequently government debt) to an investor, at the same time as it agrees its future repurchase at a certain price.

Reserve base 

The sum of the eligible balance sheet items (in particular liabilities) that constitute the basis for calculating the reserve requirement of a credit institution.

Reserve ratio 

The percentage defined by the central bank for each category of eligible liabilities included in the reserve base. This ratio is used to calculate reserve requirements.

Reserves requirement 

Minimum reserves that a credit institution must maintain in the Eurosystem. The requirements are calculated on the basis of the average daily balances during a maintenance period.

Resident  

"Residents" are considered to be natural persons who reside in Spain (except for Foreign Service personnel in Spain), legal persons with registered offices in Spain and the permanent branch offices or establishments in Spain of natural or legal persons residing abroad.

Residual life 

The time remaining, at a given moment, until the redemption date of an asset.

Returned bills  

Bills that have not been collected on their maturity and are returned past-due to the payee.

Return rate 

The ratio between the number of notes of a certain denomination that come in (return) to a national central bank during a given period, and the average number of notes in circulation in said period. It is one of the indicators used in the management and analysis of cash in circulation.

Reverse 

The opposite side to the obverse of a banknote. The reverse of each of the seven denominations of euro banknotes features a characteristic bridge of a particular period in European cultural evolution, from the first constructions to the most modern hanging bridges. They are a metaphor for communication among the people of Europe and between Europe and the rest of the world.

Reverse transaction 

An operation whereby the central bank buys or sells assets under a repurchase agreement or conducts credit operations against collateral.

Right of issue 

The central banks' right to place banknotes in circulation, thereby obtaining monetary income (seigniorage). In the Eurosystem, pursuant to the provisions of the Treaty of the European Community, the European Central Bank and national central banks are exclusively entitled to issue euro banknotes. The Banco de España, being a Eurosystem central national bank, is entitled to issue euro banknotes.

Rotation 

The measurement of the density of operations of an asset or group of assets during a period of time, given by the quotient between the volume contracted and the average outstanding balance during that period.

Roughness 

Rough quality. This is a characteristic that gives an evaluation of the level of relief on a paper surface. It is only representative as a characteristic of paper which has not been printed. Roughness is included in the technical specifications for euro banknotes.