New York Federal Reserve USD/Swiss Franc $100m on 0327 and $101m on 0320, and EURO Swap(s) European Central Bank $472.5m on 0329
Background links and translations for non-financial anons included
To close out the First Qtr of 2023 the NYFRB did it's usual weekly amount of over $400m to the ECB and also over the last 2 weeks a total of $201m to the Swiss National Bank. This is/was a weekly operation however since March 16th that turned into a daily or 'as needed' per the recent regional bank engineered stock collapse/depositor runs. They give the NYFRB digital Francs/Euros and we give them digital dollars in return to satisfy it's demand for a lack of dollars-remember 96% of all world trade is done with the US $
Fed and Global Central Banks Move to Boost Dollar Funding
https://www.bloomberg.com/news/articles/2023-03-19/fed-and-five-central-banks-announce-move-to-boost-dollar-funding#xj4y7vzkg
Notice they changed the frequency if/when they did these but have not adjusted the reporting of actions-that is still on a weekly basis.
European Central Bank has had a total of $5.614.9B of Euro/USD swaps since January 4th 2023
They averaged about $200m/weekly all of last year. NYFRB did two other ops with muh ECB on 0327 and 0328 for $5m each during last week and have done the same amount (avg) each week starting with the new year-for example $473,500,000m on 0322, and $469,500,000m on 0315 etc. Total amount for 2023 with the ECB is Cap#3.
Swiss National Bank (SNB)
Three operations to close out Q1 2023: $100m on 0327 and $101m on 0320 with a small one (test amount) of $1m on 0322 (been warning they were going to do this as the qtr closed since the same thing was done at the close of Q3/4 of last year for an amount of $20.46B-cap #4). The SNB basically arranged a shotgun marriage between Credit Suisse and UBS while stepping in to guarantee it would cover a certain % of the losses it incurs by taking over CS-and the response to that is highlighted by today's announcement of layoffs
From Today April 3rd
UBS to slash up to 36,000 jobs after Credit Suisse merger
https://www.dw.com/en/ubs-to-slash-up-to-36000-jobs-after-credit-suisse-merger/a-65207388
So just wut were all these peeps doin' in the first place?…kek
That 'buyout' was announced on March 19th-yet another Sunday 'solution'
UBS to acquire Credit Suisse
https://www.ubs.com/global/en/media/display-page-ndp/en-20230319-tree.html
>Both banks have unrestricted access to the Swiss National Bank existing facilities, through which they can obtain liquidity from the SNB in accordance with the guidelines on monetary policy instruments.
Which means they are basically getting help via these swaps with the FRBNY and SNB
The SNB basically depleted it's stated cash reserves with the LOC promise provided to Credit Suisse prior to the formalized announcement of UBS take over.
Sauce for Dollar Swaps link
https://www.newyorkfed.org/markets/desk-operations/central-bank-liquidity-swap-operations
>To support the deal announced late Sunday, the Swiss National Bank has said it is providing a loan of up to 100 billion francs ($109 billion) and that the government is providing another 100 billion francs of support as a backstop if needed.
https://apnews.com/article/credit-suisse-ubs-switzerland-bank-collapse-322332b9de476bce937c9e965b225a2f
Most of the cash taken out of those smaller banks has found it's way to the big 6 banks (what this was all about itfp and also using this chaos to finally do something with/about Credit Suisse) or the smart ones sent it to a money market account that pays a little moar in interest. Now this is all caused by the NYFRB Reverse Repo Facility (reported in here for several years on a daily basis) where these big funds park over $2T in 'cash' at this daily operation for a guaranteed rate of 4.80% (friday's was $2.375.171T and as the rates-prime-have risen so has the amount being submitted to this facility (also warned about this for a long time-since at least 2021) it's been over $2T a night since June 2nd 2022-a few times over that in May but solidly over $2T a night since that date. And where did the $ come from to prop the regional banks? why straight from the depositor base that ran to the big bois so effectively the money ended up right back at the same bank(s)
March 12th
>>18495769 First Republic Gets Additional Funding From Fed, JPMorgan
from March 26th
Money market funds swell by more than $286bn amid deposit flight
https://www.ft.com/content/032523bc-3b92-4b94-b6b8-ebbe1d606b2c
The NYFRB needs to get out of this 'bidness (fat chance until rates in muh bond markets come down) if anything that they say about the health of the banking system is applicable otherwise why the need to provide a risk-free yield of 4.80% each and every night….they won't stop this though. The ultimate goal is/was to drive smaller bank deposits to the bigger ones and they have largely succeeded in doing that but they have the same issues(s) however they have access to the NYFRB Securities lending Facility and can swap the long dated ones out for straight cash as any point.
That can be tracked here: https://www.newyorkfed.org/markets/desk-operations/securities-lending
Today's amount was $50.116B and it has been between the high $30b/low $40B and just over $50B for the same time period that the Reverse Repos have been over the $2T mark.
That can be tracked here:
https://www.newyorkfed.org/markets/desk-operations/reverse-repo
The entire Hold to Maturity (HTM) issue will come up again with the farsical banking system stress tests-see here
>>18493300 pb Silicon Valley Bank, FDIC, Federal Reserve Stress Tests and Hold to Maturity for TBTFs and others
>>18492873 lb US banks sitting on unrealized losses of $620 billion
>>18361964, >>18362016 FED are giving the European Central Bank $400m a week (avg) in US dollars in exchange for Euros to keep that currency alive
and the Monday after SVB… >>18498655 pb The Fed needs to stop raising rates now, former FDIC chair says after Silicon Valley Bank failure
'''This (links below) should help in understanding the scope of what the real arm of the Federal Reserve System does (it's not the Washington Office as that is just window dressing for who really does the monetary operations for the Federal Reserve NYFRB-all the operations come out of that branch
>>>/qrb/142799, >>>/qrb/142800, >>>/qrb/142801 Understanding NYFRB Operations:How this influence(s) market directions-Hypothecation and Rehypothecation of assets creating 1000s of claims
>>18634653, >>18634747 lb America’s Biggest Banks Experience Massive Deposit Withdrawals