20 March 2020 – Established US dollar swap lines with foreign central banks

This item is sourced from COVID-19 Policy Watch co-ordinated by Policy. We are in the process of gathering further information and aligning taxonomies for these items.

Type of Intervention: Financial markets and monetary policy
Sectors Involved:
Level of Jurisdiction: Federal
Lead People/Agency:

Overview: The Federal Reserve established temporary swap lines with a number of central banks around the world. The Reserve Bank of Australia, Banco Central do Brasil, Bank of Korea, Banco de Mexico, Monetary Authority of Singapore, Sveriges Riksbank can access up to $60 billion each, and the Danmarks Nationalbank, Norges Bank, and Reserve Bank of New Zealand up to $30 billion each.

Swap lines provide increased short-term liquidity in the US dollar, and make it easier for US dollar-denominated credit to flow to banks, thereby improving the availability of credit for households and businesses.

The temporary swap lines will be in place for at least six months. The Federal Reserve”s existing swap lines with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank will continue at a lower price and at longer maturities.
Full details here: https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315c.htm