- The Foreign and International Monetary Authorities Repo Facility lets overseas central banks use Treasury holdings as collateral to access dollars.
- Using the facility instead of selling Treasuries directly limits market disruption from official-sector liquidity needs and supports Treasury-market functioning.
- The facility was created in 2020 during the pandemic to provide dollar liquidity without excessive disruption to the Treasury market.
Quotes
“The Foreign and International Monetary Authorities Repo Facility enables overseas central banks to use their Treasury holdings as collateral to access dollars, rather than sell the bonds on the open market to raise cash.”