By David Lawder and Daphne Psaledakis
Aug 2 (Reuters) - U.S. Treasury Secretary Scott Bessent said on Sunday he will not hesitate to repeat a U.S. and ****** anese coordinated foreign exchange intervention that countered disorderly yen movements and urged that a Federal Reserve backstop for foreign central banks and monetary authorities be "upsized."
Bessent indicated in a social media posting on X that the Fed's Foreign and International Monetary Authorities lending facility was used in the coordinated action on Friday, which was confirmed by ****** an's finance ministry and President Donald Trump.
"The FIMA Repo Facility is an important backstop. We should encourage it to be upsized in the coming months," Bessent said.
Created by the Fed during the COVID-19 pandemic crisis, the FIMA Repo Facility allows countries that keep Treasury securities on deposit at the New York Fed to get up to $60 billion in U.S. dollar loans for up to seven days. The loans are offered at a rate typically above the open-market repo rate, so the expectation is that its use would be limited to times of market stress.
#repo #coordinated
Aug 2 (Reuters) - U.S. Treasury Secretary Scott Bessent said on Sunday he will not hesitate to repeat a U.S. and ****** anese coordinated foreign exchange intervention that countered disorderly yen movements and urged that a Federal Reserve backstop for foreign central banks and monetary authorities be "upsized."
Bessent indicated in a social media posting on X that the Fed's Foreign and International Monetary Authorities lending facility was used in the coordinated action on Friday, which was confirmed by ****** an's finance ministry and President Donald Trump.
"The FIMA Repo Facility is an important backstop. We should encourage it to be upsized in the coming months," Bessent said.
Created by the Fed during the COVID-19 pandemic crisis, the FIMA Repo Facility allows countries that keep Treasury securities on deposit at the New York Fed to get up to $60 billion in U.S. dollar loans for up to seven days. The loans are offered at a rate typically above the open-market repo rate, so the expectation is that its use would be limited to times of market stress.
#repo #coordinated
2 hours ago
