November 13, 20261 min read0 views

Federal Reserve Made No FX Intervention in Q3 as Dollar Swaps Ended at $207 Million

The Federal Reserve made no foreign-exchange intervention in the third quarter, while dollar liquidity swaps ended Sept. 30 at $207 million, leaving the period’s Fed operations separate from Treasury’s July yen trade.

Outstanding dollar swaps with foreign central banks totaled $250 million on June 30 and $207 million on Sept. 30. At quarter-end, balances were with the European…

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Outstanding dollar swaps with foreign central banks totaled $250 million on June 30 and $207 million on Sept. 30. At quarter-end, balances were with the European Central Bank and the Bank of England; the Bank of Japan had none. These are quarter-end balances, not cumulative lending during July-September.

Dollar liquidity swaps allow a foreign central bank to exchange its currency for dollars and later reverse the transaction at the same exchange rate. Treasury’s July 31 yen purchase was a separate operation: The New York Fed bought ¥79.4 billion in the spot market as Treasury’s fiscal agent, while Treasury sold euros from its Exchange Stabilization Fund. The July 31 Treasury yen purchase and euro sale was separate from Federal Reserve intervention.

The figures contain no Bitcoin (BTC) flow data and do not establish current yen-funded deleveraging, margin calls or forced BTC sales.