Categories
Posted by The Wall St Journal on Friday, February 07, 2018 07:06:53A second round has been planned for the US dollar for some time, with the first being expected on Monday, according to people familiar with the matter.
The dollar-denominated swaps offer to be sold on a first-in, first-out basis, the people said.
They did not give details on what would be bought, but it would be the first time the US central bank has offered foreign exchange contracts in the international trading environment.
The currency would be exchanged in U.S. dollars for currencies such as the euro, yen, pound sterling, and the Australian dollar, for which the exchange rate is pegged to the US.
The second round would be similar to the first, the person said.
The US government has been seeking to boost its foreign exchange reserves after a plunge in foreign currencies in recent months, and has been trying to increase its foreign reserves in a way that would help it weather the financial turmoil.
The central bank and the Treasury Department are negotiating on how to do so.US markets have been particularly rattled by recent events in the Middle East and Europe, and some investors have worried that the US could be in trouble.
The dollar has lost more than half its value against the greenback this year.
