The Federal Reserve has agreed to extend the dollar swap lines it re-established during the Covid-19 crisis to guard against further instability in 2021.

The announcement came alongside the Fed’s latest monetary policy decision, where it kept its main tools on hold, but adjusted the guidance around its asset purchases.

The Fed says it will keep its swap lines open until September 30, 2021, noting that the extension should “help sustain recent improvements in global US dollar funding markets by