WASHINGTON/ISTANBUL (Reuters) – The Federal Reserve has swap lines with countries that have a relationship of “mutual trust” with the United States and the highest credit standards, a Fed policymaker said on Wednesday when asked about extending lines to Turkey or others in need.
“It does not cover all the countries,” Richmond Fed President Thomas Barkin said during a Howard County Chamber of Commerce online forum at which he took questions from the media.
The U.S. central bank’s foreign facilities are meant to stabilise markets and not provide funding, he said, adding several other countries including Turkey have access to a broader overnight repo facility.
(Reporting by Howard Schneider and Jonathan Spicer; Editing by Alison Williams)
