Fed $ Swaps Outstanding

As of oct 3rd: -267,191 (approximate market value, in US millions)

The short positions reflect foreign exchange acquired under reciprocal currency arrangements with certain foreign central banks.

Posted by jck at 8:29 am ET on October 8th, 2008 |

5 Responses to “ Fed $ Swaps Outstanding ”

  • # 1 David Merkel Says:

    Am I reading this right then? The US government is short $267 billion of other currencies through short term futures and forwards?

  • # 2 jck Says:

    they sold USD to foreign central banks like the ECB and they bought FX currencies, this is done with swaps, the positions cancel out as the swaps terminate, there is no exchange risk.
    for the mechanics, see this for more details:
    http://www.aleablog.com/a/BasisSwap.pdf
    part 3: CROSS-CURRENCY BASIS SWAPS ( wonkish…)
    don’t panic, they aren’t speculating with your money.

  • # 3 SS Says:

    don’t panic, they aren’t speculating with your money.

    Well, at least not in that bucket…

  • # 4 jck Says:

    right…i guess they have their hands full in other quarters.

  • # 5 flow5 Says:

    Explanations: Report lines & T account flows
    “Modern Money Mechanics” — Changes in Foreign-Related-Factors:
    #41 & #38 SWAP LINES

  • jck [at]

    aleablog [dot] com


    © 2008 Alea | Powered by Wordpress


    E-mail It