Resources and Assets: Central Bank Liquidity Swaps
RACBLS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
79.00
Year-over-Year Change
-33.05%
Date Range
12/26/2007 - 4/11/2018
Summary
Central Bank Liquidity Swaps measure the temporary exchange of currencies between central banks to provide short-term funding and maintain financial stability during global economic stress. This metric is crucial for understanding international monetary policy coordination and managing cross-border financial liquidity.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
These swaps represent bilateral agreements between central banks to exchange currencies at predetermined rates, enabling financial institutions to access foreign currency funding during periods of market disruption. Economists view these swaps as a critical tool for mitigating potential systemic financial risks and preventing international credit market freezes.
Methodology
Data is collected and reported by central banks, tracking the total value of currency exchanges and outstanding swap lines between national monetary authorities.
Historical Context
Policymakers and financial regulators use liquidity swap data to assess global financial system resilience and potential intervention strategies during economic uncertainties.
Key Facts
- Liquidity swaps became prominently used during the 2008 global financial crisis
- These agreements help prevent potential currency and credit market disruptions
- Major central banks like the Federal Reserve, ECB, and Bank of Japan frequently utilize these mechanisms
FAQs
Q: What are central bank liquidity swaps?
A: Central bank liquidity swaps are temporary currency exchange agreements between national central banks to provide short-term funding and maintain financial market stability.
Q: Why do central banks use liquidity swaps?
A: Central banks use these swaps to provide emergency funding, manage international financial stress, and prevent potential credit market disruptions during economic uncertainties.
Q: How are liquidity swap rates determined?
A: Swap rates are typically determined by prevailing market exchange rates, central bank policy rates, and the specific terms negotiated between participating monetary authorities.
Q: When are liquidity swaps most commonly used?
A: Liquidity swaps are most frequently employed during global financial crises, market disruptions, or periods of significant international economic stress.
Q: How often is RACBLS data updated?
A: The RACBLS data is typically updated regularly, with frequency depending on central bank reporting practices and current market conditions.
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Related Trends
Assets: Liquidity and Credit Facilities: Loans, Net: Payroll Protection Program Liquidity Facility: Change in Week Average from Previous Week Average
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Assets: Liquidity and Credit Facilities: Loans: Primary Credit: Change in Week Average from Previous Week Average
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Liabilities and Capital: Other Factors Draining Reserve Balances: Currency in Circulation: Change in Week Average from Year Ago Week Average
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Term Reverse Repurchase Agreements: Federal Agency Securities Sold by the Federal Reserve in the Temporary Open Market Operations
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Liabilities and Capital: Liabilities: Reverse Repurchase Agreements: Change in Week Average from Previous Week Average
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Liabilities and Capital: Liabilities: Deposits with F.R. Banks, Other Than Reserve Balances: Foreign Official: Wednesday Level
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Citation
U.S. Federal Reserve, Resources and Assets: Central Bank Liquidity Swaps [RACBLS], retrieved from FRED.
Last Checked: 8/1/2025