Five world central banks on Monday announced expanded swap arrangements that would enable the provision of foreign currency liquidity by the Federal Reserve to U.S. 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," said the central banks in a joint statement.
"Central banks continue to work together and are taking steps as appropriate to foster stability in global financial markets," it added.
The Federal Reserve said in a separate statement that the Federal Open Market Committee, the U.S. central bank's key monetary policy making body, had authorized "new temporary reciprocal currency arrangements" with the four other central banks.
The Federal Reserve said it will provide up to 45 billion dollars to the Bank of England, 108 billion dollars to the European Central Bank, 99 billion dollars to the Bank of Japan and35 billion dollars to the Swiss National Bank.
These foreign currency liquidity swap lines have been authorized through Oct. 30, 2009, said the U.S. central bank.
(Xinhua News Agency April 7, 2009)
