The Federal Reserve's rarely used liquidity instrument did not carry out any operations last week, once again showing that Japan did not use this tool in its most recent move to support the yen. Meanwhile, overseas monetary authorities are pouring more cash into the Federal Reserve. According to the latest Federal Reserve data, the average balance of foreign and international monetary authorities' repurchase mechanisms for the week ending August 12 was zero. During the same period, the use of the Federal Reserve's foreign reverse repurchase fund pool increased by about 40 billion US dollars to 357 billion US dollars, the highest since November 5, and the biggest weekly increase since November 2022. Non-US entities can deposit overnight funds in this pool and receive returns at market interest rates, which currently stand at 3.5%.

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