Is the US already borrowing in foreign currency?

[*T*]

The major buyers of US Treasury debt are foreign central banks. This gives them dollar assets. The Fed has entered into effectively unlimited swap agreements with the same FCBs. This gives the FCBs a dollar denominated obligation and the Fed a foreign currency denominated obligation.

Although ostensibly the swap lines are to help friendly FCBs with short term dollar funding problems, the FCBs can use these swaps to offset their dollar exposure.

Does this mean the US Government is de facto borrowing in creditor currencies via the Fed swap lines?

[FRED]

Re: Is the US already borrowing in foreign currency?

The major buyers of US Treasury debt are foreign central banks. This gives them dollar assets. The Fed has entered into effectively unlimited swap agreements with the same FCBs. This gives the FCBs a dollar denominated obligation and the Fed a foreign currency denominated obligation.

Although ostensibly the swap lines are to help friendly FCBs with short term dollar funding problems, the FCBs can use these swaps to offset their dollar exposure.

Does this mean the US Government is de facto borrowing in creditor currencies via the Fed swap lines?

They have recently reduced this exposure significantly.

[*T*]

Re: Is the US already borrowing in foreign currency?

So no, then. Thanks.
Didn't realise they were so large, though - over 1/2 Trillion!
I expect they will wind up again in the next leg down.