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

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.