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Can qualifying debt under the debt guarantee component of the Temporary Liquidity Guarantee Program guarantee be denominated in a foreign currency?

April 26, 2017component currency debt denominated foreign guarantee liquidity program Qualifying Temporary

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Can qualifying debt under the debt guarantee component of the Temporary Liquidity Guarantee Program guarantee be denominated in a foreign currency?

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Yes, senior unsecured debt, except deposits, may be denominated in a foreign currency as long as the other eligibility requirements set forth in the definition are met. However, participating entities that issue debt denominated in a foreign currency should hedge their foreign exchange rate risk. For purposes of determining the amount of guaranteed debt outstanding, debt issued in a foreign currency will be converted into U.S. dollars using the exchange rate in effect on the date that the debt is insured.