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The Japan Times
Bessent seeks Fed help in defending yen in unusual call
U.S. Treasury Secretary Scott Bessent has publicly expressed the need for the Federal Reserve to increase its Foreign and International Monetary Authorities Repo Facility (FIMA) to help Japan defend its yen. This call comes in light of collaboration between the U.S. Treasury and Japan, indicating a potential strengthening of ties between the institutions, which typically function independently. Bessent's remarks highlight the critical nature of this support as Japan navigates its currency challenges.
MonitorConfidence: MediumShort term horizon
Published 4 Aug 2026, 02:45 UTC1 min read
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Summary
TL;DR
- Bessent requests the Fed to enhance its FIMA facility.
- The collaboration between the U.S. Treasury and Japan is unusual.
- FIMA allows foreign governments to access dollars with Treasury collateral.
- Bessent praises the Fed's role in Japan's currency support efforts.
- Reinforces the significance of currency support in international relations.
Interesting facts
- This request illustrates the evolving nature of U.S.-Japan financial cooperation.
- The call for support coincides with Japan's ongoing yen stabilization efforts.