As the banking crisis spreads and global demand for dollars surges, central banks are rapidly reducing their holdings of U.S. debt to “cash out” and the use of the Federal Reserve’s overseas liquidity tools has surged.
Federal Reserve data showed that official foreign holdings of U.S. Treasuries fell by $76 billion to $2.86 trillion in the week ended March 22, the largest one-week drop since March 2014.
Meanwhile, use of the Federal Reserve’s Foreign and International Monetary Administration (FIMA) repurchase agreement instrument reached a record $60 billion, well above the $1.4 billion peak reached at the peak of the epidemic.
Dollar demand soars! Central Banks Reduce U.S. Debt Holdings at Fastest Pace in Nine Years
by u/exemplaryprophecy1 in wallstreetbets