Japan’s Ministry of Finance said on X that the country’s monetary authorities have several tools available to meet market liquidity needs, according to Jin10. Among them is the option to use the U.S. Federal Reserve’s Foreign and International Monetary Authorities, or FIMA, standing repo facility at their discretion. The facility allows U.S. Treasury securities to be posted as collateral in exchange for temporary U.S. dollar liquidity. The ministry said it stands ready to use available tools whenever necessary to support orderly market functioning. The statement did not outline any immediate action, but it clarified that Japanese authorities view the FIMA repo line as one of the instruments available for liquidity support if market conditions require it.
Japan’s Ministry of Finance said in a post on X that the country’s monetary authorities have multiple tools to meet market liquidity needs, according to Jin10.
Those tools include the option to use the U.S. Federal Reserve’s Foreign and International Monetary Authorities (FIMA) standing repo facility at their discretion. The facility accepts U.S. Treasuries as collateral and provides temporary U.S. dollar liquidity. The ministry said, "We stand ready to use available tools as needed to support orderly market functioning."
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