stabilization fund

noun

1. a monetary reserve established by a country to provide funds for maintaining the official exchange rates of its currency by equalizing the buying and selling of foreign exchange.

Example Sentences

The $20 billion currency swap comprises most of the funds available in the Treasury’s rainy-day facility, called the Exchange Stabilization Fund.

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The swap line is presumably backed by Treasury’s Exchange Stabilization Fund.

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The U.S. also said it might buy Argentine debt and use its Exchange Stabilization Fund to provide standby credit.

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Treasury Secretary Scott Bessent said the U.S. could provide a $20 billion swap line, buy Argentina’s dollar bonds or give the country credit via the Treasury’s exchange stabilization fund.

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The Exchange Stabilization Fund is the Treasury’s crisis-funding vehicle through which the bridging loan to prop up the Argentine currency would be made.

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