Danmarks Nationalbank has established a bilateral swap agreement in dollars with the Federal Reserve

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2020
Published 19 March 2020

19 March 2020

Danmarks Nationalbank has agreed with the Federal Reserve to temporarily establish a bilateral swap line to address the increased need for short-term liquidity in US dollar.

Danmarks Nationalbank has been in contact with Riksbanken in Sweden and Norges Bank who both have established similar bilateral swap lines with the Federal Reserve.

Similar to swap lines agreed with other central banks, the new swap line has been agreed to improve the liquidity conditions in the global financial markets. Based on the agreement Danmarks Nationalbank will provide the Danish financial institutions dollar liquidity via auctions.

The bilateral swap agreement between the Federal Reserve and Danmarks Nationalbank amounts to 30 billion dollar and will be in place for at least 6 months.

Further information on the terms for the financial institutions will be published at www.nationalbanken.dk.

Enquiries can be directed to press advicer Ole Mikkelsen on tel. +45 3363 6027.