Use of Federal Reserve Programs - 05/07/2020
Liquidity Swap Lines
The USD swap lines are bilateral agreements between the Fed and foreign central banks. They allow foreign central banks to exchange domestic currency for US dollars. The Fed currently maintains swap line agreements with 14 central banks.
Money Market Mutual Fund Liquidity Facility
The MMLF allows the Fed to fund the purchase of money market mutual fund assets. The program is established under section 13(3) of the Federal Reserve Act.
The DW is a standing facility that allows the Fed to provide collateralized loans to depository institutions.
Primary Dealer Credit Facility
The PDCF allows the Fed to extend collateralized loans to primary dealers. The facility was established under section 13(3).
Paycheck Protection Program Liquidity Facility
The PPPLF allows the Fed to provide financial institutions with liquidity backed by loans to small and medium businesses extended under the federal government’s Paycheck Protection Program and guaranteed by the Small Business Administration. The Program is established under section 13(3).
Commercial Paper Funding Facility
The CPFF provides a liquidity backstop to issuers of commercial paper and was also established under section 13(3). It is operated by the FRBNY through a special purpose vehicle, the Commercial Paper Funding Facility II LLC.