In November 2011, the Federal Reserve announced that it had authorized temporary foreign-currency liquidity swap lines with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank. These arrangements were established to provide the Federal Reserve with the capacity to offer liquidity to U.S. institutions in currencies of the counterparty central banks (that is, in Canadian dollars, sterling, yen, euros, and Swiss francs). The Federal Reserve lines constitute a part of a network of bilateral swap lines among the six central banks, which allow for the provision of liquidity in each jurisdiction in any of the six currencies should central banks judge that market conditions warrant. In October 2013, the Federal Reserve and these central banks announced that their liquidity swap arrangements would be converted to standing arrangements that will remain in place until further notice. Since their initial establishment in 2009, except for pre-arranged small-value test operations the Federal Reserve has not drawn on any of the foreign-currency liquidity swap lines.


The United States already has such deals with Canada, England, Japan, the EU and the Swiss, I was wondering if there was any attempt or discussion with other central banks to establish a currency swap line with other countries or regions such as China, Taiwan, or South Korea.

1 Answer 1


Take a look at Central Bank Currency Swaps Tracker which discusses some of this history. There isn't a currency swap line with the PRC or the ROC, there was an emergency currency swap line with South Korea, established in 2008 during that financial crisis. These agreements expired in 2011 but were re-established in 2020 as part of the Fed's response to the covid pandemic.

In October 2008, the Fed extended swap lines to Brazil, Mexico, South Korea, and Singapore. [Because] of the emerging-market economies, the Brazilian banking system had the greatest dollar gap and the Korean banking system had the greatest dollar gap among Asian banking systems.

In 2020, during the COVID-19 crisis, both the Fed and the ECB again extended swap lines to select developing-country central banks. The Fed approved emergency lines on March 19 for Brazil, Mexico, South Korea, and Singapore.

China (PRC) has numerous agreements with other countries, but not the USA.

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