The HKMA has introduced a temporary US Dollar Liquidity Facility (the Facility) to make available US dollar liquidity assistance for licensed banks.
A total of US$10 billion is currently available under the Facility. US dollar liquidity are provided to licensed banks through weekly competitive tenders in the form of repurchase transactions for a term of 7 days, settled on the day following the tender. Allotments are subject to successful transfer of collateral to the HKMA and successful transfer of US dollar liquidity from the Federal Reserve to the HKMA through the FIMA Repo Facility.
The HKMA may at any time revise any of the parameters of the Facility as necessary, taking into account factors such as market conditions and the use of the Facility. The HKMA’s intention is to maintain the Facility until 30 September 2020, and will make a separate announcement if the end date changes.