Fed broadens access to dollars with repo agreement for foreign central banks

• The U.S. Federal Reserve on Tuesday broadened the ability of foreign centrals banks to access U.S. dollars during the coronavirus crisis by allowing them to exchange their holdings of U.S. Treasury securities for overnight dollar loans.
• The new repurchase program, distinct from the swap lines with major central banks in which dollars are exchanged for foreign currencies, “should help support the smooth functioning of the U.S.
• Treasury market by providing an alternative temporary source of U.S. dollars other than sales of securities in the open market,” the Fed said. The program is to be running by April 6 and last for at least six months.

(Source: Reuters)