Hong Kong Readies $10 Billion for Banks Amid Virus Stress
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Hong Kong’s de facto central bank is making $10 billion available under a temporary U.S. dollar liquidity facility for the city’s lenders amid the coronavirus outbreak.
The Hong Kong Monetary Authority is using the funds obtained through a Federal Reserve repo facility to help alleviate tight liquidity in the global U.S. dollar interbank money markets, according to a statement on Wednesday. The funds will be provided to licensed banks in competitive tenders in the form of seven-day repurchase transactions starting May 6 until Sept. 30.