Repo lines from the Federal Reserve also proved to be a valuable backstop for central banks with no access to swap lines, as they prevented further fixed-income asset fire sales under stress. IMF programs, four Latin American countries extended or acquired Flexible Credit Lines, and others used traditional assistance programs.
In this regard, efforts to strengthen the Global Financial Safety Net (GFSN), with broader tools that require international cooperation, should be at the forefront of policymakers’ agenda. This is essential to enhance the resilience of the global financial system.