Federal Reserve extends US dollar swap lines to nine more central banks

America's central bank moved rapidly to alleviate the impact from the scramble for US dollars as investors around the world sought out liquidity in the wake of the coronavirus pandemic, including to several of the largest emerging economies.

On Thursday morning, the Federal Reserve announced that it would expand its so-called currency 'swap' lines for central banks in Australia, Brazil, South Korea, Mexico, Singapore and Sweden by $60.0bn each one and for at least six months.

Similar swap lines were but for $30bn each were extended to Denmark, Norway and New Zealand.

In a statement, the Fed said: "These facilities, like those already established between the Federal Reserve and other central banks, are designed to help lessen strains in global US dollar funding markets, thereby mitigating the effects of these strains on the supply of credit to households and businesses, both domestically and abroad."