Loans in US dollars

The Riksbank is offering loans in US dollars against collateral. Strengthening the supply of liquidity in US dollars in the Swedish financial system in order to, if necessary, facilitate banks’ funding in this currency is one of the Riksbank's measures to mitigate the effects of the corona pandemic on the Swedish economy.

A good supply of US dollars is important for the function of Swedish financial markets and therefore also for the monetary policy transmission mechanism. An impaired function may risk leading to exacerbated financial conditions in the economy with negative consequences for output and employment in Sweden. Disruptions in the supply of US dollars risk jeopardising fulfilment of the price stability objective. In this situation, therefore, the Riksbank needs to strengthen the supply of liquidity in US dollars in the Swedish financial system in order to, if necessary, facilitate banks’ funding in this currency.

Since 19 March 2020, The Riksbank has offered monetary policy counterparties loans up to a total of USD 60 billion against collateral. The decision to offer loans in US dollars initially applied up to and including 30 September 2020, but has been extended on two occasions and now applies up to and including 30 September 2021.

As from 1 April 2021, auctions will take place once a month in accordance with the calendar below. If the situation in the economy changes, auctions can be held more often.

Outstanding loans in US dollars

Here we present the Riksbank’s outstanding loans of US dollars. Outstanding loans means US dollars lent, minus the US dollars paid back to the Riksbank at that point in time.

  

Figure: Net lending US dollars

The diagram shows the Riksbank’s outstanding loans of US dollars within the scope of this measure. The figures are stated in billions of US dollars. Source: Sveriges Riksbank.

Change in outstanding loans in US dollars
  USD billions
Outstanding volume 30 June 2021 0
New lending in July 2021 0
Repayments in July 2021 0
Outstanding volume 31 July 2021 0

Total lending in US dollars

Here we present the Riksbank’s total lending of US dollars to monetary policy counterparties. Up until 30 September 2021, the Riksbank is offering to lend USD 60 billion.

Figure: Loans in US dollars

The diagram shows, at each respective point in time, the Riksbank's total lending in US dollars within the scope of this measure since the measure was initiated in March 2020. The figures are stated in billions of US dollars. Source: Sveriges Riksbank.

Schedule for auctions July-September 2021
Date of operation Duration (days) Settlement date Maturity date
1 July 83 6 July 27 September
5 August 84 9 August 1 November
2 September 83 7 September 29 November

To participate in these auctions, the monetary policy counterparties must submit an application to the Riksbank by no later than 11.00 on the bank day before the auction day; read more in “Registration: Participation in auction procedure.” 

Was this information helpful? After your answear a textbox appears

Thanks for your feedback!

Updated 02/08/2021