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Evolution of Bilateral Swap Lines

Author

Listed:
  • Michael Perks
  • Yudong Rao
  • Mr. Jongsoon Shin
  • Kiichi Tokuoka

Abstract

This paper makes contributions to the study of bilateral swap lines (BSLs). First, this paper fills a BSL information gap by constructing a comprehensive database of BSLs based on publicly available information, including after the onset of the COVID-19 pandemic. Second, the paper provides the results of regression analysis exploring several empirical questions that were not covered in previous studies. The paper documents the evolution of BSLs into an important part of the Global Financial Safety Net (GFSN), with some helping to stabilize financial market during both the Global Financial Crisis (GFC) and the COVID-19 pandemic. Analysis suggests that countries on the recipient side of BSLs are more likely to sign and renew BSLs designed to alleviate balance of payments needs as their external position weakens. U.S. Federal Reserve BSLs appear to have been effective at stabilizing financial market conditions during the COVID-19 pandemic.

Suggested Citation

  • Michael Perks & Yudong Rao & Mr. Jongsoon Shin & Kiichi Tokuoka, 2021. "Evolution of Bilateral Swap Lines," IMF Working Papers 2021/210, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/210
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    Citations

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    Cited by:

    1. Sebastian Horn & Bradley C. Parks & Carmen M. Reinhart & Christoph Trebesch, 2023. "China as an International Lender of Last Resort," NBER Working Papers 31105, National Bureau of Economic Research, Inc.
    2. Wiggins, Rosalind & Hoffner, Benjamin & Feldberg, Greg & Metrick, Andrew, 2023. "Central Bank Foreign Currency Swaps and Repo Facilities Survey," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 5(1), pages 25-111, July.
    3. Barry Eichengreen & Camille Macaire & Arnaud Mehl & Eric Monnet & Alain Naef, 2024. "Currency internationalization with Chinese characteristics: Is capital‐account convertibility required for the renminbi to acquire reserve‐currency status?," International Finance, Wiley Blackwell, vol. 27(2), pages 102-128, August.
    4. An, Jiyoun & Kim, Hyo Sang & Park, Bokyeong, 2024. "Do China's policy measures for RMB internationalization foster currency co-movements?," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 1033-1050.
    5. Graciela Schiliuk & Tullio Buccellato & Jens Lapointe-Rohde & Georgios Palaiodimos & Habib Attia & Marthe Memoracion Hinojales & Catharine Kho & Gennady Vasiliev & Tigran Kostanyan & Alexandra de Carv, 2021. "Regional responses to the Covid-19 crisis: a comparative study from economic, policy, and institutional perspectives," Discussion Papers 18, European Stability Mechanism, revised 08 Nov 2021.

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