(Reuters) - The New York Federal Reserve said it would offer up to $500 billion in overnight loans in the market for repurchase agreements, or repo.
It is the central bank’s latest effort to provide more liquidity to money markets during a period of high volatility related to the coronavirus. The repo operation will be conducted at 1:30 p.m. eastern Tuesday.
“This action is taken to ensure that the supply of reserves remains ample and to support the smooth functioning of short-term U.S. dollar funding markets,” the New York Fed said in statement. All other repo operations will continue as planned.
Reporting by Jonnelle Marte; Editing by Chizu Nomiyama