Usage of the Federal Reserve's reverse repo (RRP) facility by foreign central
banks and other monetary authorities has climbed for a second consecutive week,
signalling overseas official entities are boosting dollar cash reserves. As of
Aug 19, foreign holders parked $373bn in the Fed's RRP pool, up from $357bn a
week earlier; the facility has gained about $56bn since Aug 5, the largest
two-week increase since Oct 2022. Market participants are watching RRP flows for
signs that Japan, after last month's yen-supporting FX intervention, may be
re-accumulating dollar liquidity.