Hong Kong Lost Its Freedom. The Fed Should Review Its VIP Pass
The House China committee chairman wants the Federal Reserve to review Hong Kong's access to its emergency dollar facility. In our view, a calm review now beats a rushed decision in a crisis.
By Clara Hughes
ALTAS WORLD NEWS OPINION | By Clara Hughes, Chief Opinion Editor | October 6, 2026 | 6-min read In March 2020, to help support the smooth functioning of financial markets, the Federal Reserve opened a window that lets foreign central banks borrow dollars against their U.S. Treasury bonds. Hong Kong's monetary authority drew up to $1.4 billion from it in May 2020, according to a congressional letter [1]. Six years later, Hong Kong is no longer the semi-independent financial hub it once was. Beijing controls it, and China is expanding Hong Kong's role in its push to promote the renminbi as an alternative to the dollar [1]. Last week, the chairman of the House Select Committee on the Chinese Communist Party asked the Fed to take a hard look at that arrangement [1]. In our view, he is right, and the time to do it is now, while the stakes are small. Key Takeaways Rep. John Moolenaar, R-Mich., wrote to the Fed urging a review of the Hong Kong Monetary Authority's access to the FIMA repo facility, CNBC reported on Oct. 6. The Fed says it received the letter and plans to respond [1]. Hong Kong drew up to $1.4 billion from the facility in May 2020 but has not materially used it