Glut of dollar drives usage of Fed reverse repo facility to record

Even though the offering rate on the Fed facility is 0 per cent, demand has been increasing as a flood of cash overwhelms U.S. dollar funding markets

Demand for a key Federal Reserve facility used to help control short-term rates surged to the highest on record, accommodating a barrage of cash in search of a home.
 
Fifty participants on Thursday parked a total of $485.3 billion at the overnight reverse repurchase facility, in which counterparties like money-market funds can place cash with the central bank. That surpassed the previous record volume of $474.6 billion from Dec 31, 2015, Fed Bank of New York data show, and was an increase from $450 billion on Wednesday.
 
Even though the offering rate on the Fed facility is 0