FIMA Repo Facility Sees Eighth Straight Week of Zero Usage Amid Japanese Intervention

The Federal Reserve's FIMA Repo Facility has recorded zero usage for eight consecutive weeks. This emergency dollar facility allows foreign central banks to borrow U.S. dollars on a short-term basis using U.S. Treasuries held in custody at the Fed as collateral.

The latest data confirms that despite Japan's recent intervention to support the yen, it did not use this mechanism to pledge U.S. Treasuries to the Fed for dollar liquidity.

U.S. Treasury Secretary Scott Bessent recently called for the Fed to expand the scale of the FIMA Repo Facility, describing it as a 'critical safety valve' for Japan's defense of the yen.