May 6, 2020 / 3:41 PM / a month ago

Fed has swap lines with countries of 'mutual trust', policymaker says

FILE PHOTO: The Federal Reserve seal is seen during Chairman Jerome Powell news conference following the two-day meeting of the Federal Open Market Committee (FOMC) meeting on interest rate policy in Washington, U.S., January 29, 2020. REUTERS/Yuri Gripas

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

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