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Bond Sales Wake From Slumber as Fed Talk Jolts Emerging Markets

Bond Sales Wake From Slumber as Fed Talk Jolts Emerging Markets
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Federal Reserve Announces The Extension Of Its Temporary U S Dollar Liquidity Swap Lines With Nine Central Banks Through December 31, 2021

Federal Reserve Announces The Extension Of Its Temporary U.S. Dollar Liquidity Swap Lines With Nine Central Banks Through December 31, 2021 Date 16/06/2021 The Federal Reserve on Wednesday announced the extension of its temporary U.S. dollar liquidity swap lines with nine central banks through December 31, 2021. These arrangements were first announced on March 19, 2020 to ease strains in global dollar funding markets resulting from the COVID-19 shock and to mitigate the effect of such strains on the supply of credit to households and businesses, both domestically and abroad. Extensions to the facility through March 2021 and later through September 2021 were announced on July 29, 2020 and December 16, 2020, respectively. A further extension of the temporary swap lines will help sustain improvements in global U.S. dollar funding markets by serving as an important liquidity backstop.

Brazil is moving to dominate inflation with its third interest rate in 2021

Brazil is moving to dominate inflation with its third interest rate in 2021 The Brazilian central bank raised its benchmark interest rate for the third time this year for the third time this year as Latin America’s largest economic authorities move aggressively to curb rising inflation. The 75-point increase by Banco Central do Brasil or BCB brings the Selic rate to 4.25 percent, up from an all-time low of 2% this year. Reflecting the many emerging nations, inflation has become a major concern for Brazilian politicians, taking pride in the economy and seeming to emerge from the worst recession caused by the pandemic.

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