Fed extends liquidity swap lines and repurchase agreement facility

This story appeared in Bank Digest.

The Federal Reserve Board has extended its temporary U.S. dollar liquidity swap lines and its temporary repurchase agreement facility for foreign and international monetary authorities (FIMA repo facility) through March 31, 2021. These facilities were established in March 2020 to ease strains in global dollar funding markets resulting from the COVID-19 shock and mitigate the effect of such strains on the supply of credit to households and businesses, both domestically and abroad. According to the Fed, the extensions of these facilities will help sustain recent improvements in global U.S. dollar funding markets by maintaining these important liquidity backstops.