Fed: Offering repurchase agreements to foreign central banks

The US Federal Reserve announced on Tuesday that it has started offering repurchase agreements to foreign central banks with their accounts at the Federal Reserve Bank of New York, as reported by Reuters.

"New facility will allow foreign central banks to use their holdings of US Treasury securities to obtain dollars for use in their jurisdictions," the Fed explained. "The program will help market functioning by broadening access to countries beyond the swap lines already established with some central banks."

Market reaction

The US Dollar Index edged lower on this announcement and was last seen up 0.66% on the day at 99.70.