Fed's FIMA repo facility continues collecting dust while foreign cash holdings actually climb.
This matters more than it seems. When foreign central banks park more dollars in regular accounts instead of tapping emergency repo lines, it signals they're comfortable with dollar liquidity. No stress, no scramble for collateral.
Translation: Dollar funding markets are chill. No hidden cracks in the plumbing. Foreign institutions aren't panicking about access to greenbacks.
Quiet dollar markets = risk-on can continue. Noisy dollar markets = watch your back.
Right now? All quiet on the funding front.
This matters more than it seems. When foreign central banks park more dollars in regular accounts instead of tapping emergency repo lines, it signals they're comfortable with dollar liquidity. No stress, no scramble for collateral.
Translation: Dollar funding markets are chill. No hidden cracks in the plumbing. Foreign institutions aren't panicking about access to greenbacks.
Quiet dollar markets = risk-on can continue. Noisy dollar markets = watch your back.
Right now? All quiet on the funding front.