Fed Starts Repo Facility to Provide Dollars to Central Banks
- New program aimed at supporting dollar funding markets
- Facility authorized by Federal Open Market Committee
This article is for subscribers only.
The Federal Reserve, in its latest response to strains caused by the coronavirus pandemic, has opened a temporary repurchase agreement facility for foreign central banks to support the smooth functioning of financial markets.
The program will allow participants to temporarily exchange U.S. Treasuries for dollars, which can then be made available to institutions in their jurisdictions, the Fed said in a statement Tuesday.