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Fed swap lines a touch lower

Posted by WARREN MOSLER on March 27th, 2009


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Central bank liquidity swaps (13) $327,692 – $1,894


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5 Responses to “Fed swap lines a touch lower”

  1. Matt Franko Says:

    ECB may now buy private Debt:
    http://www.bloomberg.com/apps/news?pid=20601083&sid=avaWjyZvkyv4&refer=currency

    Excerpt: “ECB Vice President Lucas Papademos said yesterday the central bank may buy private debt securities in the secondary market to boost the euro-region economy.

    It may “be warranted that the central bank purchases private-sector bonds in the secondary market in order to enhance liquidity and in order to improve the cost of funding,” Papademos said at an event in Brussels.”

    Here in the US, isnt the Fed getting the US Treasury to basically guarantee against losses under programs where the Fed is buying non-Govt assets? Can the ECB obtain similar guarantees?
    Resp, Matt

    Reply

  2. Matt Franko Says:

    ECB did 7-day op today ($93B @ 1.21%) USD auction…
    ECB current totals for USD$ operations:
    3 rolling 84-day auctions outstanding: $55B (12 + 19 + 24)
    28-day: $16B
    7-day: $93B

    Totals of all outstanding auctions (3 maturities):
    $212B as of Nov 18
    $224B as of Nov 20
    $236.5 as of Nov 28
    $294B as of Dec 2
    $267B as of Dec 10
    $262B as of Dec 16
    $246B as of Dec 17
    $257B as of Dec 23
    $254B as of Dec 30
    $237B as of Jan 7
    $227B as of Jan 15
    $229B as of Jan 22
    $186B as of Jan 27
    $179B as of Feb 9
    $190B as of Feb 11
    $186B as of Feb 19
    $135B as of Feb 24
    $144B as of Feb 25
    $145B as of Mar 5
    $152B as of March 11
    $150B as of March 18
    $165B as of March 26
    $164B as of April 1

    If the ECB intends to run this off by end of October 09, they need to be reducing gross amount by about $6B per week from now on.
    Resp,

    Reply

  3. Matt Franko Says:

    Warren,
    Just saw this, Mexico is going to draw $30B. Oh-oh.

    http://www.bloomberg.com/apps/news?pid=20601086&sid=a20WhyRgtKvM&refer=latinamerica

    April 1 (Bloomberg) — Mexico asked for a $47 billion credit line from the International Monetary Fund and said it will tap a $30 billion swap line with the Federal Reserve to shore up investor confidence and bolster the currency.

    Reply

  4. Matt Franko Says:

    Mexico went The Full Monty:

    http://www.federalreserve.gov/newsevents/press/monetary/20081029b.htm

    “…the Federal Reserve has authorized the establishment of temporary liquidity swap facilities with the central banks of these four large and systemically important economies. These new facilities will support the provision of U.S. dollar liquidity in amounts of up to $30 billion each by the Banco Central do Brasil, the Banco de Mexico, the Bank of Korea, and the Monetary Authority of Singapore…”
    Resp, Matt

    Reply

  5. warren mosler Says:

    right, was wondering why they didn’t do that right away. that one might be tough to collect if history is any guide.

    Reply

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