Central banks announce expanded swap arrangements

The Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank are announcing swap arrangements that would enable the provision of foreign currency liquidity by the Federal Reserve to US financial institutions.  Should the need arise, euro, yen, sterling and Swiss francs would be provided to the Federal Reserve via these additional swap agreements with the relevant central banks.  Central banks continue to work together and are taking steps as appropriate to foster stability in global financial markets.

The Governing Council of the ECB has decided to establish a temporary reciprocal currency arrangement (swap line) with the Federal Reserve. This agreement will provide the Federal Reserve with the capacity to offer liquidity of up to EUR 80 billion. The Governing Council approved this swap line until 30 October 2009.

Information on the actions taken by other central banks is available on the following websites:

Bank of England: http://www.bankofengland.co.ukBank of Japan: http://www.boj.or.jp/enFederal Reserve Board: http://www.federalreserve.govSwiss National Bank: http://www.snb.ch