House China chair urges Fed to review Hong Kong access to dollar facility

The chair of the House Select Committee on the Chinese Communist Party, Rep. John Moolenaar, is pressing the Federal Reserve to review whether Hong Kong should keep access to the FIMA repo facility, a Fed program that can provide shortterm dollar liquidity to foreign monetary authorities. The request comes as U.S.China tensions remain elevated and Beijing works to expand the yuan’s role in global finance. Hong Kong has used the facility only minimally since it was created in 2020, so any nearterm market impact would likely be limited. Supporters of the facility say it helps reinforce the dollar’s role in global markets by giving central banks a crisis backstop and supporting demand for U.S. Treasurys. Critics of tighter restrictions argue that cutting off access could weaken that broader financial benefit without materially changing conditions in Hong Kong.