I was kinda expecting these nine banks to be US banks?
These swap lines allow the provision of U.S. dollar liquidity in amounts up to $60 billion each for the Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Korea, the Banco de México, the Monetary Authority of Singapore, and the Sveriges Riksbank (Sweden) and $30 billion each for the Danmarks Nationalbank (Denmark), the Norges Bank (Norway), and the Reserve Bank of New Zealand.
I'm quite illiterate when it comes to macro economics, but doesn't this kinda mean the US FED is spreading (evening out) the US hyperinflation to other countries? Mostly the rich ones, I see all of Scandinavia in that list.
Dollar Liquidity Swap Lines When a foreign central bank draws on its dollar liquidity swap line with the Federal Reserve, the foreign central bank sells a specified amount of its currency to the Federal Reserve in exchange for dollars at the prevailing market exchange rate.
In response to mounting pressures in bank funding markets, the FOMC announced in December 2007 that it had authorized dollar liquidity swap lines with the European Central Bank and the Swiss National Bank to provide liquidity in U.S. dollars to overseas markets, and subsequently authorized dollar liquidity swap lines with each of the...
In April 2009, the Federal Reserve announced foreign-currency liquidity swap lines with the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank. The foreign-currency swap lines could have supported operations by the Federal Reserve to address financial strains by providing liquidity to U.S. institutions in sterling in amounts of up to £30 billion, in euro in amounts of up to 80 billion, in y…
I was kinda expecting these nine banks to be US banks?
I'm quite illiterate when it comes to macro economics, but doesn't this kinda mean the US FED is spreading (evening out) the US hyperinflation to other countries? Mostly the rich ones, I see all of Scandinavia in that list.
I agree. Need help in understanding this.