[Ed. Note: Remember, it’s only temporary… Like the income tax, or Nixon ending the gold standard. Completely temporary. Count on it. They never lie about these sorts of things.]
by James Politi, Brendan Greeley, and Colby Smith of Financial Times, London
The Federal Reserve has taken a new step to meet the global demand for dollars, setting up a facility that would allow central banks and international monetary authorities to enter into repurchase agreements with the U.S. central bank.
The Fed said the new facility would work in tandem with the dollar swap lines already established by the central bank with its peers across 14 different countries as the coronavirus pandemic has spread across the world.
[…] As investors have flocked to safe assets and companies have scrambled to offset the blow to revenues from widespread economic shutdowns, they have pushed the greenback’s value sharply higher, leading to a global shortage of dollars that has destabilised emerging markets.