Bank of Japan is the Biggest User of Fed U.S. Dollar Liquidity Swap

Posted on 04/11/2020

The Federal Reserve on March 19, 2020, revealed the establishment of temporary U.S. dollar swap lines with an larger list of central banks. The Bank of Japan has been the biggest user of the Federal Reserve U.S. dollar liquidity swap. Bank of Japan leads the central bank group with the European Central Bank in second place. Japan, South Korea, and Singapore account for just over half of all foreign exchange swaps outstanding.

U.S. Dollar Liquidity Swap – Operation Results

From March 4, 2020 to April 9, 2020

Central Bank Name Amount in USD
Bank of Japan 301,464,000,000
European Central Bank 221,607,200,000
Bank of England 59,180,000,000
Swiss National Bank 22,440,000,000
Bank of Korea 13,135,000,000
Monetary Authority of Singapore 9,450,000,000
Banco de Mexico 6,590,000,000
Danmarks Nationalbank 4,275,000,000
Norges Bank 1,575,000,000
Reserve Bank of Australia 1,150,000,000
Total 640,866,200,000

Source: New York Fed (FRBNY).

The swap lines were first created in December 2017 during the onset of the global financial crisis. The swap lines were reauthorized in May 2020 during the European debt crisis and then turned into standing arrangements in October 2013.

Keywords: Federal Reserve System.

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