Keeping you up to date on the latest data releases.
- Federal Reserve Balance Sheet
For the first time since March, the central bank liquidity swap lines were tapped. The Swiss National Bank (SNB) drew $200 million on their line the week of August 17, and then the European Central Bank (ECB) drew $500 million on its dollar liquidity swap line the following week. In opposition to the SNB operation, which appeared to be for a foreign exchange intervention, the ECB move looks to be in support of struggling European banks. There has been a noticeable jump in foreign official reverse repurchase agreements in addition to the use of the liquidity swap lines. The reverse repo operations allow foreign central banks to temporarily acquire some of the Fed’s security holdings. Data is not available on which central banks have been conducting the operations, but those balances have jumped from roughly $70 billion to $100 billion throughout August. Maiden Lane I made another sizable payment on its outstanding loan, while Maiden Lane II and Maiden Lane III made smaller dents in their outstanding balances.