Reis, Ricardo;
Bahaj, Saleem;
(2020)
Central Bank Swap Lines during the COVID-19 Pandemic.
Covid Economics
, 2
pp. 1-12.
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Abstract
Facing visible strain in dollar funding markets during the Covid-19 pandemic, the Fed lowered the rate on the swap lines it had with five other central banks, and opened new ones in nine other currencies. Some of these were used, some not. We use this variation to show the impact of the swap lines on CIP deviations across currencies. The results confirm the analysis in Bahaj and Reis (2019): the swap lines put a ceiling on CIP rates only around the time of an auction.
| Type: | Article |
|---|---|
| Title: | Central Bank Swap Lines during the COVID-19 Pandemic |
| Publisher version: | https://cepr.org/publications/covid-economics-issu... |
| Language: | English |
| Additional information: | This version is the version of record. For information on re-use, please refer to the publisher's terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > UCL School of Management |
| URI: | https://discovery-pp.ucl.ac.uk/id/eprint/10195487 |
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