The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach & Education function engages, empowers and educates the public in the Second District. Our outreach mission furthers the Bank’s commitment to the region by listening to the communities we serve and developing programs, analysis and sponsored conferences and clinics to help meet their needs. Our education mission aims to advance public knowledge about the Federal Reserve System and its role in the economy.
These swap facilities respond to the re-emergence of strains in short term funding markets. They are designed to improve liquidity conditions in global money markets and to minimize the risk that strains abroad could spread to U.S. markets, by providing foreign central banks with the capacity to deliver U.S. dollar funding to institutions in their jurisdictions and for the Federal Reserve to deliver foreign currency to U.S. institutions if conditions warrant. At present, there is no need for the Federal Reserve to offer liquidity in foreign currencies.
Why Swap Lines Are in the U.S. National Interest
We live in a global economy. Interconnected world markets mean that at times of stress, market pressures can spread from one part of the world to another, threatening the supply of credit. Currency swap lines with other central banks help relieve that stress.
On October 31, 2013, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank announced that they had agreed to convert their existing temporary liquidity swap arrangements to standing agreements. The only information that has been redacted from these agreements is individual contact and personal information and signatures.