![]() ![]() In December 1974, ESF turned over, in a sale at par value, a gold balance of 2.02 million ounces (valued at $85 million) to the Treasury General Account. In August 1971, the United States ceased conducting gold transactions with foreign monetary authorities, and the need to moderate the drain on the US gold stock was eliminated. To provide foreign currency to repay the Fed's swap drawings, the Treasury during the 1960s issued non-marketable foreign currency-denominated medium-term securities (Roosa bonds) and sold the proceeds to the Fed. The Federal Reserve entered into a network of swap agreements with other central banks in order to obtain foreign currencies for short-term periods for use in absorbing forward sales of dollars by foreign central banks hedging exchange risk on their dollar holdings. At the invitation of the Treasury, the Federal Reserve joined in foreign exchange operations in February 1962. The ESF resumed intervention operations in the foreign exchange market in March of 1961 (for the first time since the mid-1930s), but it soon became apparent that the resources of the ESF alone were too small to sustain transactions of the magnitude necessary. Treasury policy during 1961-71 period focused on deterring capital outflows from the United States and giving major foreign central banks an incentive to hold dollar reserves rather than demand gold from the U.S. ![]() intervention has been jointly financed by both the ESF and SOMA, and the financing has been equally shared between the two accounts. Researchers should note that these data are for the ESF only and do not cover the operations of the Federal Reserve’s System Open Market Account (SOMA). Tables presenting data on all ESF intervention operations since 1973 and all ESF credit arrangements since 1936 can be accessed through the links above. After World War II, the ESF conducted Treasury's monetary gold transactions and widened its participation in credit arrangements. From 1936 to the present, the ESF has participated in over a hundred credit or loan arrangements with foreign governments or central banks. ![]() Also, it entered into credit arrangements, starting in 1936. The ESF began to conduct foreign exchange market intervention transactions in 19. ![]()
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