Bessent Seeks Fed Expansion of FIMA Repo Facility Amid Yen Crisis

US Treasury Secretary Scott Bessent has called on the Federal Reserve to expand an obscure lending program, known as the Foreign and International Monetary Authorities (FIMA) Repo Facility, to support Japan's efforts to defend its currency.

The FIMA Repo Facility would allow Japan to use Treasuries as collateral to borrow dollars that could then be used to buy yen. This move comes after a joint Japanese-US effort began in late July to bolster the weakening yen.

Japan is the largest foreign holder of US Treasury securities, which makes it an attractive candidate for this type of assistance. The exact timing and details of the potential expansion are unclear at this point.