Bank of Japan is the Biggest User of Fed U.S. Dollar Liquidity Swap
Posted on 04/11/2020
The Federal Reserve on March 19, 2020, revealed the establishment of temporary U.S. dollar swap lines with an larger list of central banks. The Bank of Japan has been the biggest user of the Federal Reserve U.S. dollar liquidity swap. Bank of Japan leads the central bank group with the European Central Bank in second place. Japan, South Korea, and Singapore account for just over half of all foreign exchange swaps outstanding.
U.S. Dollar Liquidity Swap – Operation Results
From March 4, 2020 to April 9, 2020
| Central Bank Name | Amount in USD |
|---|---|
| Bank of Japan | 301,464,000,000 |
| European Central Bank | 221,607,200,000 |
| Bank of England | 59,180,000,000 |
| Swiss National Bank | 22,440,000,000 |
| Bank of Korea | 13,135,000,000 |
| Monetary Authority of Singapore | 9,450,000,000 |
| Banco de Mexico | 6,590,000,000 |
| Danmarks Nationalbank | 4,275,000,000 |
| Norges Bank | 1,575,000,000 |
| Reserve Bank of Australia | 1,150,000,000 |
| Total | 640,866,200,000 |
Source: New York Fed (FRBNY).
The swap lines were first created in December 2017 during the onset of the global financial crisis. The swap lines were reauthorized in May 2020 during the European debt crisis and then turned into standing arrangements in October 2013.
Keywords: Federal Reserve System.