UPDATE-Fed launches repurchase deal for int'l authorities

By Tuba Sahin

ANKARA (AA) - The U.S. Federal Reserve launched Tuesday a temporary repurchase deal facility for foreign and international monetary authorities.

The move will help support the smooth functioning of financial markets and maintain the supply of credit to U.S. households and businesses, the Fed said.

Foreign and international monetary authorities will be able to temporarily exchange U.S. Treasury securities held with the Fed for U.S. dollars.

An alternative temporary source of U.S. dollars is provided other than sales of securities in the open market thanks to the new facility.

"It should also serve, along with the U.S. dollar liquidity swap lines the Federal Reserve has established with other central banks, to help ease strains in global U.S. dollar funding markets," it said.

Beginning April 6, the facility will continue for at least six months.