TY  - JOUR
AU  - Goldberg,Linda S.
AU  - Kennedy,Craig
AU  - Miu,Jason
TI  - Central Bank Dollar Swap Lines and Overseas Dollar Funding Costs
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15763
PY  - 2010
Y2  - February 2010
UR  - http://www.nber.org/papers/w15763
L1  - http://www.nber.org/papers/w15763.pdf
N1  - Author contact info:
Linda S. Goldberg
Federal Reserve Bank-New York
33 Liberty Street
New York, NY 10045
Tel: 212/720-2836
Fax: 212/720-6831
E-Mail: linda.goldberg@ny.frb.org

Craig Kennedy
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045
E-Mail: Craig.Kennedy@ny.frb.org

Jason Miu
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045
E-Mail: Jason.Miu@ny.frb.org
AB  - Following a scarcity of dollar funding available internationally to banks and financial institutions, starting in December 2007 the Federal Reserve established or expanded Temporary Reciprocal Currency Arrangements with fourteen foreign central banks. These central banks had the capacity to use these swap facilities to provide dollar liquidity to institutions in their jurisdictions. This paper presents the developments in the dollar swap facilities through the end of 2009. The facilities were a response to dollar funding shortages outside the United States during a period of market dysfunction. Formal research, as well as more descriptive accounts, suggests that the dollar swap lines among central banks were effective at reducing the dollar funding pressures abroad and stresses in money markets. The central bank dollar swap facilities are an important part of a toolbox for dealing with systemic liquidity disruptions.
ER  -