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Financial Services Law Insights and Observations

Fed extends temporary repurchase agreement facility through March 2021

Federal Issues Federal Reserve Covid-19 Of Interest to Non-US Persons

Federal Issues

On July 29, the Federal Reserve Board announced the extensions of its temporary U.S. dollar liquidity swap lines as well as the temporary repurchase agreement facility for foreign and international monetary authorities (FIMA Repo Facility) through March 31, 2021. As previously covered by InfoBytes, the FIMA Repo Facility was established in March in response to the Covid-19 pandemic to allow central banks and other international monetary authorities with accounts at the Federal Reserve Bank of New York to enter into repurchase agreements with the Federal Reserve to temporarily exchange their U.S. Treasury securities held with the Federal Reserve for U.S. dollars, which can then be made available to institutions in their jurisdictions. 

The Fed notes that the extension “will allow approved FIMA account holders to continue to temporarily exchange their U.S. Treasury securities held with the Federal Reserve for U.S. dollars, which can then be made available to institutions in their jurisdictions.”

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