◂ Event Timeline

Dec 16, 2020MACROGlobal

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

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

The extension was announced on December 16, 2020.

WHY IT MATTERS

Keeping dollar liquidity available to foreign central banks supports global trade finance, which helps sustain import demand for feed commodities.

AFFECTSUS Dollar (Broad)

SOURCE
reuters.comHoward SchneiderDec 16, 2020

Price reaction & history

US Dollar (Broad)no directional readSO FAR1d -0.1%5d +0.3%20d -0.3%

After 4,478 past macro events, US Dollar (Broad) moved a median +0.0% over 5 sessions (51% higher; middle half -0.4% to +0.5%), and +0.1% over 20.

Mar 19, 2020Fed opens dollar swap lines for 9 additional foreign central banks+0.5%
Jul 30, 2020Fed extends swap lines and warns of slowing US economy - Central Banking-0.3%
Dec 17, 2020Fed’s dollar swap lines and ‘Fima’ facility to run nine more months - Central Banking+0.2%
Jul 30, 2020US dollar funding tensions and central bank swap lines during the COVID-19 crisis-0.3%
Jun 20, 2019Dollar extends losses on Fed rate cut bets-1.1%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

US Dollar (Broad) DXY · GP ▸

——— · ·

Loading…