Discussion Paper

Do the Fed’s International Dollar Liquidity Facilities Affect Offshore Dollar Funding Markets and Credit?

Abstract: At the outbreak of the pandemic, in March 2020, the Federal Reserve implemented a suite of facilities, including two associated with international dollar liquidity—the central bank swap lines and the Foreign International Monetary Authorities (FIMA) repo facility—to provide dollar liquidity. This post discusses recent evidence showing the contributions of these facilities to financial and economic stability, highlighting evidence from recent research by Goldberg and Ravazzolo (December 2021).

Keywords: dollar; facilities; swap lines; FEMA repo;

JEL Classification: F3; G15;

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2021-12-20

Number: 20211220