Loans in US dollars

Between mid-March 2020 and the end of September 2021, the Riksbank offered 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 was 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. During the pandemic, therefore, the Riksbank needed 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 was extended on two occasions and applied up to and including 30 September 2021.

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. The programme ended 1 October 2021 and the diagram below is therefore no longer updated.

  

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.

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 offered to lend USD 60 billion. The programme ended 1 October 2021 and the diagram below is therefore no longer updated.

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.

 

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Updated 01/10/2021