New Zealand and Sweden try to ease the pressure
The RBNZ rolled out a term auction facility that will kick off tomorrow. They confirmed the swap lines with the FEd and said they're providing liquidity to ensure funding can be accessed at rates near the cash rate. The auction facility will be on terms up to 12 months.
In Sweden, the Riksbank said it will offer loans in US dollars to support the economy. I imagine they'll hedge the loans but that could prove tricky. That's a new instrument that other central banks may have to turn to. The Riksbank also said it will buy more securities, up to SEK300B.
These are all good measure but what the market would really like to see is a day where we don't need any new emergency measures. However the over-arching theme here is that central banks will truly do whatever it takes, and I think that playbook includes mass, coordinated FX intervention so USD longs should be careful.
