What Are the Fed’s Dollar Swap Lines and FIMA Repos, and Why Do They Matter?

In March, the Federal Reserve temporarily expanded its dollar swap lines and created the Foreign and International Monetary Authorities (FIMA) repo facility. In this post, we explain what these policies are and why they are important. In a follow-up post, we will show evidence that these policies have been largely effective. What Are Swap Lines and FIMA Repos? Dollar swap linesAlso known as “dollar liquidity swap lines” or “dollar liquidity swap operations.” allow foreign central banks to swap their own currency for an equivalent (market-based) amount of U.S. dollars from the Fed. After some pre-determined … (full story)

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