We have existing swap lines with other central banks.
The committee met by teleconference on Sunday morning and formally approved the swap lines.
The currency swap lines that central banks set up among themselves have also been shut down.
Even the Fed's use of swap lines has been attacked as a gift to foreign banks.
Acting on an unprecedented scale, the Fed expanded these swap lines by $330 billion, to $620 billion.
The Bank of Japan and the Peoples Bank of China should provide similar swap lines to Korean and ASEAN countries.
— swap lines to emerging markets to prevent the draining of their foreign-currency reserves, low-conditionality I.M.F.
These are $30 billion in Fed swap lines to each of four countries: Brazil, Korea, Mexico, and Singapore.
The Fed's new swap lines with other central banks are an important reassurance for countries that face a liquidity squeeze; those swap lines deserve to be systematised and broadened.Modest as they sound, such repairs will be difficult and time-consuming.
The five participants agreed to earmark $100bn£59bnbn) of their foreign-exchange reserves for swap lines on which all members are entitled to draw.
The G-20 meeting, on November 15th, could move some of the specifics forward (joint fiscal expansion in East Asia, swap lines among Asian central banks).
