Re: Fed comment on currency swaps

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(email exchange)

Yes, thanks, seems he doesn’t fully grasp what the swaps are about?

Seems none of them do.

With oil going down the US will spend less on imports making USD harder to get overseas, keeping the USD relatively strong and exacerbating the foreign sector USD squeeze.

>   On Wed, Nov 12, 2008 at 10:44 PM, J A wrote:
>   In his speech, Mr. Kohn said some special lending facilities, such as a
>   program for the commercial-paper market, “are clearly emergency
>   operations only” and would be wound down. Some of the Fed’s
>   temporary lending programs such as currency swaps with other central
>   banks and auctions for credit at the Fed’s discount window might
>   become permanent, he said.