Japan to use Fed's FIMA repo facility for future yen interventions, reducing reliance on Treasury sales

Japan's finance ministry announced plans to use the Federal Reserve's FIMA repo facility for future FX interventions, per CNBC. The facility lets foreign central banks pledge U.S. Treasuries for dollar liquidity instead of selling them outright — preserving reserve assets. The shift follows an August 3 coordinated U.S.-Japan yen-buying intervention to counter the yen's slide to 40-year lows.