Exchange (foreign-exchange, 환율) swap expansion ''
https://shinjukuacc.com/20200312-03/
WSJ-FRB-ForeignCentralBankForeignExchangeSwap2
WSJ-FRB-ForeignCentralBankForeignExchangeSwap1
WSJ "FRB는 외국 중앙 은행과 통화 스왑 연장을"2
WSJ "FRB는 외국 중앙 은행과 통화 스왑 연장을"
2018/03/18
The American newspaper
"Swap is needed!" Behind the scenes of explicit work
2020/03/13
Subtitles-Settings-Subtitles ( 1 )-Automatic translation-Language
"The US Fed should enter into foreign-exchange (환율) swaps with China, South Korea, Hong Kong, Australia, Taiwan, etc."
Insisted.
Looking at the situation about this,
Indeed, the United States entered into a dollar liquidity supply swap with central banks in 14 countries and territories during the 2008 financial crisis.
With the Federal Reserve Board ( FRB )
European Central Bank ( ECB ),
Bank of England ,
Swiss National Bank ,
Bank of Canada, BOC
Bank of Japan
However, aside from Australia and Taiwan, it is doubtful that the US Fed will enter into foreign-exchange (환율) swaps with China, Hong Kong and South Korea.
WSJ “Foreign -exchange(환율) Resuming Swap ”
U.S. Media Wall Street Journal
On (WSJ), an editorial was published on Monday, local time.
(From The Fed's Market Emollients WSJ )
= Japan Time 2020/03/10 ( Tue ) 08:14 )
" Emollients" is an unfamiliar word, but if you look it up in a dictionary
Translated terms such as "salve" and "relaxant" appear.
If you dare translate,
"The Fed (the US central bank) can mitigate market turmoil."
To put it simply, WSJ responded to the Fed,
Concluded with foreign currency authorities on the collapse of Lehman Brothers in 2008
"A mechanism for supplying dollar money to financial markets",
In other words, let's revive an agreement called "foreign exchange swap".
It is proposed.
According to a WSJ editorial,
In the United States, the effective FF rate is 1.09 %,
While the US 10- year yield is below 0.60 %,
New York Fed raises overnight repo from $ 100 billion to $ 150 billion on Monday
By increasing the repo from $ 20 billion to $ 45 billion for two weeks,
He pointed out that liquidity in the United States is not anxious.
However, the institution of dollar financing to foreign countries is inadequate,
`` Foreign-exchange(환율) swap ''
I would like to connect with a foreign central bank.
The applicable duties are as follows:
“ The Fed currently has swap arrangements with the central banks of Canada, UK, European Union, Switzerland and Japan.
It could extend the se swap lines to other countries with markets in tumult like Australia, South Korea, China, Taiwan and Hong Kong.
Foreign central banks should also be encouraged to supply dollars to their banks if needed . "
In a nutshell:
"The Fed is currently in Canada, the United Kingdom, the European Union, Switzerland, Japan
There are swap agreements with each central bank.
But these swap agreements are shaking the market
It should be extended to Australia, South Korea, China, Taiwan and Hong Kong.
Foreign central banks should also provide dollars to private banks as needed. ''
US Foreign Exchange (환율) Exchange History
In this regard, the Fed's website
“ Credit and Liquidity Programs and the Balance Sheet ”
According to the Fed, the US Fed has signed the following 14 foreign central banks since December 2007 :
Exchange (foreign-exchange, 환율) swap
(“ Dollar liquidity swap lines” )
They are said to have ended in February 2010 .
Reserve Bank of Australia (RBA)
The Central Bank of Brazil (the Banco Central do Brasil)
The Bank of Canada, BOC
Danmarks Nationalbank
The Bank of England, BOE
The European Central Bank (ECB)
The Bank of Japan, BOJ
The Bank of Korea
Bank of Mexico (the Banco de Mexico)
The Reserve Bank of New Zealand, RBNZ
Norges Bank
The Monetary Authority of Singapore, MAS
Swedish Riksbank (Sveriges Riksbank)
Swiss National Bank (SNB)
Also, the Fed is currently
With the other five central banks
Exchange (foreign-exchange, 환율) swaps
Unlimited period and amount
`` To supply private banks with the counterpart currency,
Foreign exchange (환율) swap agreement ''
And
"Currency swaps to provide funds to other central banks, such as foreign exchange intervention"
Is not.
Japan US UK Europe Switzerland Canada 6 Central Banks
Such as currency authorities
The partner countries that have concluded exchange (foreign-exchange, 환율) swaps and currency swaps
In the case of Europe, countries close to the euro area,
In the case of the United States, the partner country of NAFTA,
Asian countries for Japan,
It seems that personality has emerged (Chart).
Chart Japan, United States, UK, Europe, Switzerland, Canada
|
Subject |
Exchange (foreign-exchange, 환율) swap |
Currency swap |
|
European Central Bank (ECB) |
Japan, United States, United Kingdom, Switzerland, Canada |
Denmark, Latvia, Poland, Sweden, China |
|
Bank of England (BOE) |
Japan, United States, Europe, Switzerland, Canada |
China |
|
US Fed |
Japan, United States, Europe, United Kingdom, Switzerland, Canada |
Mexico, Canada |
|
Bank of Canada (BOC) |
Japan, US, UK, Europe, Switzerland + Korea |
― |
|
Swiss Bank |
Japan, United States, United Kingdom, Europe, Canada |
China |
|
Bank of Japan (BOJ) |
United States, United Kingdom, Europe, Switzerland, Canada + Australia, China, Singapore |
― |
|
Ministry of Finance of Japan |
― |
India, Thailand, Indonesia, Philippines, Singapore |
(Source: Created by the author)
The United States stubbornly Japan, the United States, Europe, United Kingdom, Switzerland, Canada, Mexico
I don't know why you would not enter into a swap with any other country
However, the WSJ claims that editorials should be resurrected,
Judging from the context,
I think it is probably a foreign exchange (환율) swap.
Of these, swaps with Australia and Taiwan
I think it's very desirable to resurrect (or sign a new one).
This is because currency-swap (foreign-exchange, 환율) swaps
In addition to the perspective of financial cooperation,
It also has a role as a safety valve in financial and currency markets.
Why is Korean media Crazy delight ?
By the way,
it seems that there was a media that rejoiced at seeing this WSJ editorial.
「WSJclaimsFirstNeedsCurrencySwapWithS-KoreaEtc.2
미국 월가가 먼저 주장 "한국 등과 통화 스와프 필요"2
（ of 2020.03.1207:50 中央日報(JoongAng Ilbo) the Japanese version)
Korean media "中央日報(JoongAng Ilbo) " (Japanese version)
"We need a currency swap with South Korea etc."
It seems to be reporting.
However,
"The United States is the European Union (EU), United Kingdom, Japan, Canada, Switzerland
have currency swap agreements with only five countries and regions. "
There is, of course, not a currency swap,
It is a mistake of exchange (exchanging, 환율) swap.
Curiously , it included the 中央日報(JoongAng Ilbo)
Watching Korean media reports,
We always confuse currency swaps with foreign exchange (환율) swaps.
Regarding the difference between the two,
I don't understand why they ignore it stubbornly.
On top of that, the 中央日報(JoongAng Ilbo)
WSJ " 10 days local time" (9 days local time in electronic version),
"To eliminate financial market panic for the first time in 10 years
Fed Korea, China, Taiwan, Hong Kong, Australia
Argued that we should enter into currency swap agreements with such central banks. ''
The original WSJ text is "foreign-exchange swap lines " ,
In other words, it is correctly written as "exchange (환율) swap".