U.S. Fed approves additional USD 13 bn currency swap facility

Washington, Sep 26 (PTI) The U.S. Federal Reserve Friday
said it has approved an additional USD 13 billion currency
swap facility from the Bank of England, the European Central
Bank (E.C.B.) and the Swiss National Bank, a move aimed at
improving liquidity conditions in global financial markets.

The Federal Open Market Committee has authorised a USD 10
billion increase in its temporary swap facility with the
E.C.B. and a USD 3 billion increase in its facility with the
Swiss National Bank, a Fed statement said.

These expanded facilities will now support the provision
of U.S. dollar liquidity in amounts of up to USD 120 billion
by the E.C.B. and up to USD 30 billion by the Swiss National
Bank.

These operations are designed to address funding
pressures over quarter-end, while the Central banks continue
to work together closely and are prepared to take further
steps as needed to address the ongoing pressures in funding
markets, the statement added.

In sum, these changes represent a USD 13 billion addition
to the USD 277 billion previously authorised temporary
reciprocal currency arrangements with other central banks.

In addition to the swap lines with E.C.B. and the Swiss
National Bank, temporary swap lines previously have been
authorised with: the Bank of Japan (USD 60 billion), the Bank
of England (USD 40 billion), the Reserve Bank of Australia
(USD 10 billion), the Bank of Canada (USD 10 billion), the
Bank of Sweden (USD 10 billion), the National Bank of Denmark
(USD 5 billion) and the Bank of Norway (USD 5 billion).

These arrangements will remain till January 30 next year,
it added.