Joseph Wang(@josephwang):Bessent's promotion of the FIMA Repo Facility is just theatre to boost the effect of his FX intervention - similar to his leaking of the his 'to do list.' FIMA Repo makes no sense for Japan. The open secret is Japan already has hundreds of billions of dollars parked at the Fed's foreign repo pool, basically a checking account for foreign central banks. This can be inferred from public data after the facility was uncapped. Also note private sector repo is abundant, trading at notably lower rates than the FIMA facility offering rate, and would not be publicly disclosed weekly. Of course, Japan has access to standing Fed swap lines too. So it never has to sell Treasuries to get dollars.

2026.08.03 11:11

Bessent's promotion of the FIMA Repo Facility is just theatre to boost the effect of his FX intervention - similar to his leaking of the his 'to do list.' FIMA Repo makes no sense for Japan. The open secret is Japan already has hundreds of billions of dollars parked at the Fed's foreign repo pool, basically a checking account for foreign central banks. This can be inferred from public data after the facility was uncapped. Also note private sector repo is abundant, trading at notably lower rates than the FIMA facility offering rate, and would not be publicly disclosed weekly. Of course, Japan has access to standing Fed swap lines too. So it never has to sell Treasuries to get dollars.