To help ease strains in the global U.S. dollar funding market, the Federal Reserve today established a temporary repurchase agreement facility for foreign and international monetary authorities. This is the latest move by the Fed to support global market operations and ensure the flow of credit to households and businesses as the coronavirus pandemic continues. The Fed previously established U.S. dollar liquidity swap lines with a number of other central banks.
Through this new facility, FIMA account holders—including central banks and other international monetary authorities with accounts at the New York Fed—may enter into repurchase agreements with the Fed. It is intended to provide an alternative temporary source of U.S. dollars other than the sales of securities in the open market. The facility will be available starting April 6 and will continue for at least six months.