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Fed extends pandemic-related dollar 'swap' lines for 9 other central banks

The ability to trade foreign currency for dollars at the US central bank is permanently available to the European Central Bank and a handful of other major central banks

The Federal Reserve building in Washington DC. Photo: Reuters
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The Federal Reserve building in Washington DC. Photo: Reuters

Reuters
The Federal Reserve will keep dollar "swap" lines open for nine mid-sized foreign central banks until September 30, 2021, extending a program established early in the coronavirus pandemic to help ease global financial stress.

The ability to trade foreign currency for dollars at the US central bank is permanently available to the European Central Bank and a handful of other major central banks.

In March, with the pandemic raising concerns about the need for dollar financing across the globe, the Fed set up $60 billion swap arrangements with the central banks of Australia, Brazil, South Korea, Mexico, Singapore and Sweden, and $30

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First Published: Dec 17 2020 | 12:51 AM IST

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