The Fed's central bank swap lines and FIMA repo facility

Mark Choi, Linda Goldberg, Robert Lerman, Fabiola Ravazzolo

Building on the facility design and application experience from the period of the global financial crisis, in March 2020 the Federal Reserve eased the terms on its standing swap lines in collaboration with other central banks, reactivated temporary swap agreements, and then introduced the new Foreign and International Monetary Authorities (FIMA) repo facility. While these facilities share similarities, they are different in their operations, breadth of counterparties and potential span of effects. This article provides key details on these facilities and evidence that the central bank swap lines and FIMA repo facility can reduce strains in global dollar funding markets and U.S. Treasury markets during extreme stress events.

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Year of publication:	[2021]
Authors:	Choi, Mark ; Goldberg, Linda S. ; Lerman, Robert Irving ; Ravazzolo, Fabiola
Publisher:	New York, NY : Federal Reserve Bank of New York
Subject:	swap line \| dollar \| liquidity \| repo \| Federal Reserve lending facilities \| Swap \| Geldpolitik \| Monetary policy \| Repo-Geschäft \| Repo transactions \| Zentralbank \| Central bank \| Geldmarkt \| Money market \| Staatspapier \| Government securities \| Liquidität \| Liquidity \| Internationaler Finanzmarkt \| International financial market \| Rentenmarkt \| Bond market \| Coronavirus \| US-Dollar \| US dollar \| Offenmarktpolitik \| Open market operations \| Bankenliquidität \| Bank liquidity \| Finanzkrise \| Financial crisis