BoE drops Libor for hedging UK FX reserves
Central bank adopts Sonia in Treasury swap programme, consults on restrictions for Libor collateral
The Bank of England is putting its words into action on benchmark reform. The central bank has stopped using Libor swaps with fixings beyond 2021 to hedge the UK government’s foreign exchange reserves. It has also launched a consultation on tighter restrictions for Libor-linked collateral lodged with the central bank’s liquidity facility.
Andrew Hauser, executive director for markets at the Bank of England, said a project team at the BoE began advising HM Treasury last year on transitioning to
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