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U.S. Fed establishes currency swaps with 9 central banks

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Federal reserve

Washington (AP) -- The Federal Reserve has established currency swaps with nine central banks overseas to support dollar lending in global markets that are under pressure from the impact of the virus outbreak.

Under the swap lines, the Fed exchanges dollars for an equal amount of foreign currency. The move enables foreign banks to provide dollars to their banks that sometimes lend and trade in US currency.

The nine central banks include the Reserve Bank of Australia, the Banco Central do Brasil, and the Banco de Mexico.

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