ABSTRACT

COVID-19: Federal Reserve Support for Foreign Central Banks [April 7, 2020]   [open pdf - 518KB]

From the Document: "As part of the U.S. response to COVID-19 [coronavirus disease 2019], the U.S. Federal Reserve (Fed) has taken steps to ensure that foreign central banks have uninterrupted access to U.S. dollars. First, the Fed established emergency swap lines, or temporary reciprocal currency arrangements, with a broader group of central banks and lowered the interest rate it charges on the swap lines. Swap lines allow foreign central banks to temporarily exchange their currency for dollars with the Fed. When the swap is concluded, the foreign central bank returns the dollars, with interest, to the Fed and the Fed returns the foreign currency. Second, the Fed created a foreign central bank (FIMA) repo facility. The facility, which also charges interest, allows foreign central banks to temporarily exchange their U.S. Treasury securities for U.S. dollars."

Report Number:
CRS In Focus, IF11498
Author:
Publisher:
Date:
2020-04-07
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
Help with citations