ON RRP: A Deep Dive. The usage of RRP facility is being used to not invest in private firms, and is being used to prop up FFR, which in turn props up the USD. The MMFs are protecting themselves by parking their cash in a risk-free ON RRP facility, while helping the Fed prop up the USD.

by laflammaster Found something interesting today – a 2015 paper on Overnight RRP as a Monetary Policy tool. https://www.federalreserve.gov/econresdata/feds/2015/files/2015010pap.pdf ​ What this looks like is an economic analysis, and will explain the nature of RRP. Indeed, it confirms that the use …

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Fed Reverse Repo Usage Rises to Record for Fourth Straight Day As Turkish Lira Volatility Hits All-time High And US Current Account Balances Rise To 2006 Levels

by confoundedinterest17 (Bloomberg) — The amount of money that investors are parking at a major central bank facility climbed to yet another all-time high as supply-demand imbalances continue to dog U.S. dollar funding markets.  Eighty-one participants on Monday placed a total of $1.758 trillion …

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