Examples of using Swap lines in English and their translations into Bulgarian
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Why do we need swap lines?
The Fed set up $20 billion swap lines with the ECB and $4 billion swap lines with the Swiss National Bank.
What are currency swap lines?
As of December 2015, the swap lines have only been used to lend US dollars and Swiss francs to euro area banks.
Navigation Path: Home›Explainers›Tell me more›What are currency swap lines?
But what exactly are currency swap lines, why are they needed and how do they work?
The United States continues to support the smooth functioningof international financial markets, including through the central bank swap lines with the ECB".
Similar swap lines, which enable foreign central banks to borrow from the ECB and re-lend that money locally, were used during the eurozone financial crisis, but were typically publicly announced.
In that context, the Governing Council of the ECB decided in cooperation with other central banks to establish a temporary network of reciprocal swap lines with the partner central banks which will remain valid until 1 February 2013.
The ECB's pledge would involve opening so-called swap lines with the Bank of England, allowing euros and sterling to be exchanged and effectively making unlimited funding in both currencies available to European banks, the sources said.
The liquidity-providing transactions were conducted by the Eurosystem in connection with the temporary reciprocal currency arrangements(swap lines) that the ECB has with the Swiss National Bank and the Federal Reserve System.
The ECB's pledge would involve opening so-called swap lines with the Bank of England, allowing euros and sterling to be exchanged and effectively making unlimited funding in both currencies available to European banks.
In 2011 the ECB, along with the Bank of England, the Bank of Canada, the Bank of Japan, the Federal Reserve andthe Swiss National Bank, set up a network of swap lines enabling the participating central banks to obtain currency from each other.
While swap lines were initially used by central banks to fund certain market interventions, in recent years they have become an important tool for preserving financial stability and preventing market tension from affecting the real economy.
Rob Subbaraman, Nomura's chief Asia economist based in Hong Kong, agreed that China was likely to speed up use of the yuan beyond its borders,activate yuan swap lines and take other measures to help Asia's economies if the euro broke up.
The U.S. Federal Reserve, the European Central Bank and the central banks of Canada, Britain, Japan andSwitzerland said in a joint statement they had agreed to lower the cost of existing dollar swap lines by 50 basis points from December 5.
The liquidity-providing transactions were conducted by the Eurosystem in connection with the temporary reciprocal currency arrangements(swap lines) that the European Central Bank has with Danmarks Nationalbank, Sveriges Riksbank, the Swiss National Bank and the Federal Reserve System.
Desperate to bring$US interest rates down for domestic borrowers, the Federal Reserve resorted to a very high risk policy of advancing unlimited,functionally unsecured,$US lines of credit called‘swap lines' to several foreign central banks.
USD 22 billion The liquidity-providing transactions were conducted by the Eurosystem in connection with the temporary reciprocal currency arrangements(swap lines) that the European Central Bank has with the Swiss National Bank and the Federal Reserve System.
The liquidity-providing transactions were conducted by the Eurosystem in connection with the temporary reciprocal currency arrangements(swap lines) between the European Central Bank and the Federal Reserve System, the Swiss National Bank and Danmarks Nationalbank.
This operation was conducted by the Eurosystem in connection with the temporary reciprocal currency arrangements(swap line) that the European Central Bank(ECB) has established with the Federal Reserve System.
Russia badly needs liquidity support and the swap line could be an ideal tool,” said Bank of Communications chief economist Lian Ping.
This operation was conducted by the Eurosystem in connection with the temporary reciprocal currency arrangement(swap line) between the ECB and Danmarks Nationalbank.
This transaction was conducted by the Eurosystem in connection with the temporary reciprocal currency arrangement(swap line) between the European Central Bank(ECB) and the Federal Reserve System.
These operations were conducted by the Eurosystem in connection with the temporary reciprocal currency arrangement(swap line) between the ECB and the Federal Reserve System.
The liquidity-providing transactions were conducted by the Eurosystem in connection with the temporary reciprocal currency arrangement(swap line) that the European Central Bank has with the Federal Reserve System.
But if their home central bank has a swap line with the foreign central bank, the home central bank can provide its banks with the required liquidity in the foreign currency without using its foreign reserves.”.
This operation was conducted by the Eurosystem in connection with the temporary reciprocal currency arrangement(swap line) between the ECB and the Swiss National Bank and had no effect on the net position of the Eurosystem in foreign currency.
On the other hand, if your country's central bank has a swap line with the foreign central bank, it can supply domestic banks with liquidity in the currency they need without having to resort to their foreign reserves.
This operation was conducted by the Eurosystem in connection with the temporary reciprocal currency arrangement(swap line) between the ECB and the Swiss National Bank and had no effect on the net position of the Eurosystem in foreign currency.