Market Review and Trends
What are the FED swap lines and will it solve the dollar shortage ?
By Eurasianomics  •  April 12, 2020

Following the COVID-19 outbreak and market meltdown, we have seen investors shift to “flight to safety” by liquidating their positions in financial assets. After years of leveraging thanks to easy monetary policies around the world, global U.S. Dollar denominated debts have increased massively. Coupled with the economic shutdown across nations, the situation exacerbated the USD demand across the globe and we have seen major depreciation in other currencies against USD including majors such as EUR, GBP and AUD. The Federal Reserve, to sooth the dollar shortage in the global economy, extended “swap lines” to 9 other major central banks around the world including Monetary Authority of Singapore on 19 March 2020, on top of the prevailing facilities that were active since the GFC of 2008 with Bank of Canada, Bank of England, Bank of Japan, ECB, and Swiss National Bank. Following the announcement and swap line executions, the FX markets

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By Eurasianomics
A little perspective from a Eurasian with Economics major and professional experience as someone working in the finance industry. Currently based in Singapore, Eurasianomics is a financial blog by a retailer investor like yourself. The focus of this blog is to share economics and financial analysis based on my personal investment experiences that came out of working across 3 different continents.
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