Economics
Fed Starts Dollar-Swap Lines With Nine More Central Banks
- Temporary swap lines will be in place for at least six months
- Authorities need to meet massive virus-induced dollar demand
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The Federal Reserve established temporary dollar liquidity-swap lines with nine additional central banks, expanding the rapid roll-out of financial-crisis-era programs to combat the economic meltdown from the coronavirus pandemic.
The new facilities total $60 billion each for central banks in Australia, Brazil, South Korea, Mexico, Singapore, and Sweden, and $30 billion each for Denmark, Norway, and New Zealand. The swap lines will be in place for at least six months.