By Howard Schneider and Lindsay Dunsmuir
By Howard Schneider and Lindsay Dunsmuir
WASHINGTON, March 19 (Reuters) – The U.S. Federal Reserve opened the faucets on Thursday for central banks in nineextra international locations to entry {dollars} in hopes of stopping the coronavirus epidemic from inflicting a world financial rout.
The Fed stated the swaps, by which the Fed accepts different currencies in trade for {dollars}, will for at the very least the subsequent six months enable the central banks of Australia, Brazil, South Korea, Mexico, Singapore, Sweden, Denmark, Norway and New Zealand to faucet as much as a mixed complete of $450 billion, cash to make sure the world’s dollar-dependent monetary system continues to perform.
Those international locations got swap strains throughout the 2007 to 2009 disaster, and the Fed has everlasting swap preparations with the Financial institution of Canada, the Financial institution of England, the Financial institution of Japan, the European Central Financial institution, and the Swiss Nationwide Financial institution.
The brand new swap strains “like these already established between the Federal Reserve and different central banks, are designed to assist reduce strains in world U.S. greenback funding…