Bessent Pushes $60 Billion FIMA Cap Reform to Strengthen Yen After Joint U.S.-Japan Intervention
Updated
Updated · cryptohayes.substack.com · Aug 11
Bessent Pushes $60 Billion FIMA Cap Reform to Strengthen Yen After Joint U.S.-Japan Intervention
3 articles · Updated · cryptohayes.substack.com · Aug 11
Summary
$60 billion is the current per-counterparty cap on the Fed’s FIMA repo facility that Treasury Secretary Scott Bessent wants raised after a recent joint U.S.-Japan yen-buying intervention.
The proposal would let Japan’s Ministry of Finance repo its U.S. Treasury holdings for dollars at the Fed, then sell those dollars for yen without dumping Treasuries outright.
The latest intervention reportedly exceeded $100 billion yet lifted the yen only about 5%, underscoring why a larger or uncapped FIMA backstop is being discussed.
Japan has roughly $1.143 trillion in U.S. Treasury holdings, and the GPIF another $230 billion, giving Tokyo sizable collateral if the facility is broadened.
A FIMA overhaul would mark a deeper U.S.-Japan effort to reverse years of yen weakness while limiting disruption to Treasury markets and the global carry trade.