[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-322395-105":59,"doc-detail-322395-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","a-new-role-for-the-exchange-stabilization-fund","A New Role for theExchange Stabilization Fund","","The U.S. Treasury announced a temporary insurance program for U.S. money-market mutual funds, using assets from the Exchange Stabilization Fund (ESF) to guarantee fund liabilities for up to one year. Created in the 1930s to stabilize the dollar’s exchange value, the ESF is described as traditionally focused on exchange intervention and stabilization loans. The text explains how money-market mutual funds function, why investor runs could disrupt commercial paper markets, and reviews the ESF’s origin and evolving mandates.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/a-new-role-for-the-exchange-stabilization-fund/322395/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/a-new-role-for-the-exchange-stabilization-fund/322395.png","ImageObject",300,407,{"name":92,"@type":93},"Ava Thompson","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-13","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",14,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"What new temporary program does the U.S. Treasury introduce for money-market mutual funds?","Question",{"text":113,"@type":114},"The Treasury creates a temporary insurance program so money-market mutual funds can enroll for a fee, and ESF assets are used to guarantee certain liabilities for up to one year.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"Why does the text link money-market mutual fund runs to the commercial paper market?",{"text":118,"@type":114},"Runs could reduce investors’ confidence and withdraw funds quickly, which would affect financing conditions in commercial paper markets where many corporations rely on operating funds.",{"name":120,"@type":111,"acceptedAnswer":121},"How was the ESF originally created and what has been its typical role?",{"text":122,"@type":114},"The ESF was created in 1934 to stabilize the exchange value of the dollar through buying or selling foreign currencies and gold, and over time it has focused mainly on influencing exchange rates and providing stabilization loans.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},322395,1790096387,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},1649267921044,"https://us-avatar.wpscdn.com/avatar/1800007509477c92dfb?_k=1786009248482753345","# A New Role for theExchange Stabilization Fund\n\nOwen F.Humpage  \nRecently,the U.S.Treasury announced a new,temporary insurance program for U.S,moneymarket mutual funds.Toguarantee payment of these funds'liabilities,the Treasury will use the assets of its Exchange Stabilization Fund.Createdin the 1930s to stabilize the exchange value of the dollar,it has been tapped on occasion to supply loans to foreigncountries in financial distress.This latest use of ESF assets is unlike anything the Fund has been used for before,  \nThe U.S.Tireasury acted recently to prcempt problems inanother area of the financial system weakened by the currentcrisis-U.S.moncy-market mutual funds.  \nMoncy-markct mutual funds invest in highly rated short-tcrmsecurities,notably commercial papcr,and allow investors torcmove thcir funds quickly.Conscqucntly,many invcstorshave viewed the funds as csscntially risk-frce checking ac-counts.But lately,some of these mutual funds are finding thevalue of thcir asscts below-or perilously close to-the valueof their liabilities,a situation more worrisome in the currcntcnvirorment bccause investors'deposits are not insured.  \nRuns on money-markct mutual funds could have far-reachingcffects,particularly for the commercial papcr markct,whcremany corporations find opcrating funds.So in September2008 the Treasury announced it would crcate a tcmporaryinsurance program for moncy-markct mutual funds.Themutual funds can entcr this insurance program for a fec.  \nThe Treasury willuse the near $50 billion worth of assets ofa little-known agency within the department,the ExchangeStabilization Fund (ESF),to guarantce payments of moncy-market-mutual-fund liabilities for up to one year.The ESFis a small agency whose traditional activitics have consistedof forcign-cxchange intervention and tcmporary stabilizationloans to developing countrics.Eor most pcople who hcard theTrcasury's recnt announccment,the fund's obscurity was itsmost distinguishing feature,but for those who study ccntralbanks and monetary econonics,the ESF is better known-and rather controversial  \nDctails about the ncw insurance program are not yet avail-able,but a look at the origin and history of the ESF revealshow different such a role is from any use the ESF has becnput to before.  \n## ESFOrigins\n\nThe Roosevelt administration and the U.S.Congress createdthe ESFin 1934,capitalizing it with $2 bllion derived froman increase in the official price ofU.S.gold.Ostcnsibly,Con-gress established the ESF to stabilize the exchange valuc ofthe dollar by buying or selling foreign curcncies and gold.Atthe time,the administration was worried that a similar Britishstabilization fund might attcnzpt to manipulate exchange ratcsto its own advantage and wanted to throw a counter punch,if nccessary.  \nOver the years,the ESF has intervened chicfly to influencethe dollar's exchange rate against currencies of the major de-veloped countrics,primarily the German mark andJapancseyen.The ESF,however,also intcrprcted its dircctivc-tostabilize the exchange rate value of the dollar-much norebroadly,as Iexplain below.  \nCongress allowed the ESF to be self-financing and to cxistoutside of the annual appropriations process.Doing soguarded the agency's secrecy,a prccious commodity whcncharged with fending off currency speculators.In a like vein,Congress gave the sccretary of the treasury full control overESF operations.Responding quickly is also esscntial for suc-ccssful forcign-cxchange opcrations.Aside from the presi-dent,no othcr officcr of the U.S.govemment has authorityto review the Treasury's decisions regarding ESFoperations.Since the late 1970s,Congress has imposcd some oversighton opcrations and on the financing of the ESF,but these arelargely after-thc-fact rcporting rcquirements.Fund opcra-tions remain squarcly within purvicw of the Treasury.  \nForeign-Exchange Intervention  \nThe Gold Reserve Act authorizes the ESF to stabilizedollar exchange rates.As Anna Schwartz dctails in herhistory of ","cbCaitPFyDoOp7NL","https://ap.wps.com/l/cbCaitPFyDoOp7NL","pdf",1345732,"English","# A New Role for theExchange Stabilization Fund\n# ESFOrigins\n## Foreign-Exchange Intervention\n## 1. Currency Denominations of ESF Assets","[{\"question\":\"What new temporary program does the U.S. Treasury introduce for money-market mutual funds?\",\"answer\":\"The Treasury creates a temporary insurance program so money-market mutual funds can enroll for a fee, and ESF assets are used to guarantee certain liabilities for up to one year.\"},{\"question\":\"Why does the text link money-market mutual fund runs to the commercial paper market?\",\"answer\":\"Runs could reduce investors’ confidence and withdraw funds quickly, which would affect financing conditions in commercial paper markets where many corporations rely on operating funds.\"},{\"question\":\"How was the ESF originally created and what has been its typical role?\",\"answer\":\"The ESF was created in 1934 to stabilize the exchange value of the dollar through buying or selling foreign currencies and gold, and over time it has focused mainly on influencing exchange rates and providing stabilization loans.\"}]","A New Role for theExchange Stabilization Fund | PDF",1789962604,13]