Bloomberg Law
March 24, 2023, 6:14 PM

Central Banks Shed Most US Debt Since 2014 as Dollar Needs Jump

Libby Cherry
Bloomberg Editorial
Greg Ritchie
Greg Ritchie
Bloomberg News

Foreign central banks liquidated Treasury holdings at the fastest clip in nine years and tapped a key Federal Reserve facility to raise cash as banking stress roils markets.

Fed data show foreign official holdings of Treasury securities fell by $76 billion in the week through March 22 to $2.86 trillion. That’s the largest weekly decline since March 2014.

At the same time, the US central bank’s recently-established Foreign and International Monetary Authorities, or FIMA, repurchase agreement facility was tapped for a record $60 billion, data show, dwarfing the $1.4 billion peak reached during the height of the pandemic.

The ...

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