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Fed Extends Temporary Swap Lines for EM Central Banks

EMERGING MARKETS

The Federal Reserve on Wednesday announced the extension of its temporary U.S. dollar liquidity swap lines through September 30, 2021.

  • The extension of the temporary swap lines applies to all nine central banks previously announced on March 19 and extended in July.
  • Notable for the EM space, this includes the Banco Central do Brasil, the Bank of Korea, the Banco de Mexico and the Monetary Authority of Singapore.
  • These swap lines continue to allow the provision of U.S. dollar liquidity in amounts up to $60 billion each.

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