# The Fed is extending its currency exchange program to more central banks around the world

> The Federal Reserve extended its dollar swap lines to Australia, Brazil, Denmark, Korea, Mexico, Norway, New Zealand, Singapore and Sweden for six months. Most lines carry $60 billion and three carry $30 billion. The Fed said the aim is to ease strains in global dollar funding markets that were restricting credit.

- Date: 2020-03-19 · published 2020-03-19T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/54307-the-fed-is-extending-its-currency-exchange-program-to-more-central-banks-around
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Reduced offshore dollar stress should ease the dollar's rally, which supports commodity prices and eases pressure on currencies such as the Brazilian real, Mexican peso and Korean won that feed importers and exporters depend on.

## Read by commodity

- DXY: bearish ▼
- USDBRL: bearish ▼
- USDMXN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-07-29 | [Is the US dollar losing its clout as the world's reserve currency?](https://feedsoft.ai/events/52391-is-the-us-dollar-losing-its-clout-as-the-world-s-reserve-currency.md) | +0.4% | -0.4% |
| DXY | 2024-07-31 | [Currency markets: Banks get bullish on the British pound](https://feedsoft.ai/events/29539-currency-markets-banks-get-bullish-on-the-british-pound.md) | -0.5% | -1.9% |
| DXY | 2020-07-30 | [Fed extends swap lines and warns of slowing US economy - Central Banking](https://feedsoft.ai/events/52027-fed-extends-swap-lines-and-warns-of-slowing-us-economy-central-banking.md) | -0.3% | -0.5% |
| DXY | 2020-08-28 | [FED Sparks Currency Rate Moves, Dollar Pares Losses, Pound-Dollar Dips From 2020 Best \| Exchange Rates UK](https://feedsoft.ai/events/51869-fed-sparks-currency-rate-moves-dollar-pares-losses-pound-dollar-dips-from-2020.md) | -0.5% | +1.0% |
| DXY | 2024-03-06 | [Euro is back on the scene for global central banks](https://feedsoft.ai/events/31421-euro-is-back-on-the-scene-for-global-central-banks.md) | -0.6% | +0.3% |
| USDBRL | 2024-09-19 | [Brazil’s Central Bank resumes tightening as Fed moves toward easing](https://feedsoft.ai/events/28521-brazil-s-central-bank-resumes-tightening-as-fed-moves-toward-easing.md) | -0.0% | +3.5% |
| USDBRL | 2020-11-26 | [Brazilian Real is the most undervalued EM currency - IIF - Forex Crunch](https://feedsoft.ai/events/50343-brazilian-real-is-the-most-undervalued-em-currency-iif-forex-crunch.md) | -3.0% | -2.9% |
| USDBRL | 2019-01-30 | [In emerging markets, the peso is the best-positioned currency - The Mazatlan Post](https://feedsoft.ai/events/61301-in-emerging-markets-the-peso-is-the-best-positioned-currency-the-mazatlan-post.md) | -1.3% | +0.5% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/03/19/the-fed-is-extending-its-currency-exchange-program-to-more-central-banks-around-the-world.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.