- establishment or expanded temporary U.S. dollar liquidity arrangements (swap lines) with 9 other central banks in response to an increased demand for U.S. dollars overseas.
- helping to stabilize foreign dollar markets through the deployment of swap lines would support foreign economic conditions, which also positively benefit the U.S. economy through many channels, including confidence and trade.
- swap lines improve liquidity conditions in U.S. and foreign financial markets by providing foreign central banks with the capacity to deliver U.S. dollar funding to institutions in their jurisdictions during times of market stress.
- Federal Reserve provides U.S. dollars to a foreign central bank in exchange for the equivalent amount of funds in foreign currency back to the Federal Reserve. The parties agreed to swap back the same quantities of their two currencies at a specified date in the future (1 to 90-days), using the same exchange rate as in the initial transaction.
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