Fed Urged to Reconsider Hong Kong’s Dollar Lifeline Access

House China committee Chairman John Moolenaar is urging the Fed to review Hong Kong’s access to the FIMA repo facility, which provides short-term dollar liquidity to foreign monetary authorities. This request aligns with China’s push to promote the renminbi in global finance and expand Hong Kong’s role in that initiative. Despite Hong Kong’s limited use of the Fed facility since 2020, economists caution that restricting access could impact demand for dollars and U.S. Treasurys. The chairman of an influential congressional committee, Rep. John Moolenaar, calls on the Federal Reserve to consider cutting off a financial lifeline extended to Hong Kong…