Blog
Swap lines curbed global dollar shortages, appreciation during COVID-19 crisis
Abstract: During the initial weeks of the COVID-19 crisis, imbalances in the offshore dollar funding market led to safe-haven appreciation of the dollar. Fed swap lines between the U.S. central bank and counterparts abroad addressed these imbalances, subsequently helping reduce the cost of offshore dollar borrowing, reversing dollar appreciation and providing liquidity.
Keywords: international economics; monetary policy; inflation; financial crises; COVID-19; swaps;
Access Documents
File(s):
File format is text/html
https://www.dallasfed.org/research/economics/2024/0521
Description: Full text
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Dallas
Source: Dallas Fed Economics
Publication Date: 2024-05-21