Most emerging market central banks conducted outright sales of foreign exchange reserves to help meet the local market’s demand for foreign currency funding and to relieve the pressure on the exchange rate. Central banks in countries like Brazil, Korea, Mexico and Singapore had dollar swap arrangements with the Federal Reserve.
However, it may be noted that although EMEs undertook several liquidity-easing and foreign exchange measures, their use of credit easing and quantitative easing was more limited (Table 1). While both developed economies and EMEs resorted to conventional and unconventional monetary measures, there were certain differences in terms of their timing, types and magnitudes.