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Foreign Repurchase Agreement Pool

In addition, the New York Fed may decide to limit the total size or individual participation in the foreign repo basket based on other factors, for example. B the quantity of available securities held at any time in SOMA. Tuesday`s new repo scheme is far from the first put in place by the Fed to deal with the economic fallout from the coronavirus. In recent weeks, loan pools have been set up for struggling businesses and lenders to keep businesses afloat. A credit facility for small businesses is expected to be announced in the near future, the Fed said in a March 23 statement. This measure aims to reduce activity in the foreign repo pool, which was widely seen as a factor in the funding shortage in September. Fortunately, as far as the right side is concerned, it is not necessary to collect the sums held by each FOI, a rather impossible task, since many FOIs do not declare their cash stands, but rely by far on the largest part of the FOI universe: foreign CBs with foreign exchange reserves (see also the box above). It is not necessary to find the data on all local CB websites, as the IMF provides some details in addition to the headline reserve numbers. A, (b), i) in the SDDS data document titled „Total Currency and Deposits with Other National Central Banks, BIS and IMF” is exactly what is needed to continue. The New York Fed has the right to „manage the overall size of the foreign repo pool” in order to „maintain orderly market or reserve management conditions.” .