Republican Lawmaker Seeks Review of Hong Kong’s Fed Liquidity Access

A prominent Republican lawmaker has called on the Federal Reserve to reassess Hong Kong’s access to a critical dollar liquidity facility. John Moolenaar, chairman of the House Select Committee on China, sent a letter to Kevin Warsh requesting a formal review of the Hong Kong Monetary Authority’s participation in the Fed’s Foreign and International Monetary Authorities Repo Facility (FIMA). This facility allows foreign central banks to borrow US dollars using their Treasury holdings as collateral.

The FIMA facility is designed to provide liquidity during times of market stress, but Moolenaar’s request raises questions about Hong Kong’s continued access amid broader geopolitical tensions. The letter underscores growing scrutiny over financial ties between the US and Hong Kong, particularly as relations between Washington and Beijing remain strained.

No immediate response from the Federal Reserve or the Hong Kong Monetary Authority has been reported. The review, if conducted, could have significant implications for Hong Kong’s financial stability and its role in global markets.