US House Select Committee on China Chairman John Moolenaar asked the Federal Reserve to review the Hong Kong Monetary Authority's access to its Foreign and International Monetary Authorities Repo Facility, according to a letter to Fed Chairman Kevin Warsh.
Moolenaar cited changes in Hong Kong's legal and institutional autonomy and the launch of a PBOC-backed yuan repo facility for overseas central banks as reasons for the review.
He asked the Fed to assess whether the HKMA's role in China's offshore yuan liquidity infrastructure creates information, operational, or geopolitical risks.
The letter also asked the Fed to outline options including enhanced reporting requirements, conditionality or modified access terms, and the potential systemic impact of suspending or changing the HKMA's access.
Moolenaar requested a written response by Oct. 14.
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