Loading ...US economic news:
Fed establishes new repo facility with foreign central banks
March 31, 2020 at 8:50 a.m. ET
MarketWatch
The Federal Reserve on Tuesday said it was establishing a temporary repo facility for foreign central banks that will help make U.S. dollars available in their jurisdictions. In the new facility, the central banks will be able to temporarily exchange their U.S. Treasurys held at the Fed for U.S. dollars. “This facility should help support the smooth functioning of the U.S. Treasury market by providing an alternative temporary source of U.S. dollars other than sales of securities in the open market,” the Fed said. It should also ease strains in global U.S. dollar funding markets, the central bank said. All central banks and foreign monetary authorities with accounts at the Fed are eligible.
The FED spends a few more trillions taking in the worlds u.s. treasuries so the $ doesn’t soar
No Comments
No comments yet.
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.