HONGKONGDIR

HOMECompaniesDictionaryFAQs

Home » Dictionary » Banking » system open market account (SOMA)

System Open Market Account (SOMA)

Definition
An account managed by the Federal Reserve Bank that contains assets acquired through the open market. The account consists of domestic securities and foreign currency portfolios. The domestic securities are U.S. treasuries, and the foreign currency portfolios include a variety of investments denominated in euros and yen. The SOMA can be used as a source of liquidity in an emergency. It also provides collateral for the liabilities on the Federal Reserve's balance sheet.

Nearby Terms
Similar companies
Copyright © 2013 hongkongdir.com All Rights Reserved.
Provides public information about companies in the Hong Kong.