Fed Opens Repo Facility for Foreign Central Banks and Monetary Authorities

The Federal Reserve has established a temporary repurchase agreement facility for foreign and international monetary authorities (FIMA). The move, announced Tuesday, is designed to "support the smooth functioning of financial markets, including the U.S. Treasury market, and thus maintain the supply of credit to U.S. households and businesses."

The FIMA repurchase (repo) facility allows foreign central banks and other international monetary authorities with accounts at the Federal Reserve Bank of New York to enter into repurchase agreements with the Fed.

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Source Fool.com