Fed swap line for S'pore

• euphratis

  30 Oct 08, 11:59

  

  //Quote//

  THE US Federal Reserve on Wednesday announced temporary 'swap' lines of credit with central banks in Brazil, Mexico, South Korea and Singapore to help those countries ease a credit squeeze.

  //Unquote//

   

  I really wonder who is having this credit squeeze, Singapore or the US? Are they now up to grab what ever world's money (particularly those not badly affected) they can get their hands on after bring the world encon down or what? What trick or treat are they doing now?

• AndrewPKYap

  30 Oct 08, 12:02

   

  People are hoarding US dollars, can you believe it???!!! There is a shortage of US dollars. Nobody wants the Singapore dollars and so the US government has to swap US$ for S$.

  
  

   

• ArtBoon

  30 Oct 08, 15:19

  Can someone point me to some literature on how inter central bank credit swap lines work?

  Thank you.

• maxtor

  31 Oct 08, 13:56

  my impression is that the US is taking an opportunity to reassert itself as the world's reserve currency. In other words, they r ensuring that the USD does not lose its popularity to another currency, ie. the euro.

• googoomuck

  31 Oct 08, 23:22

  MAS is adopting a 'prudent' approach because it's undecisive.

  The  US FED also extended a swap line to NZ and NZ accepted it.

  As NZ is also mired in recession, if it works for NZ, MAS will follow suit...kekekeke

• euphratis

  14 Nov 08, 12:47

  US$ no longer king pin

  MAS will allow Sing$ to weaken against US$