Release Date: September 18, 2008
For release at 3:00 a.m. EDT
Today, the Bank of Canada, the Bank of England, the European Central Bank
(ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank are
announcing coordinated measures designed to address the continued elevated
pressures in U.S. dollar short-term funding markets. These measures,
together with other actions taken in the last few days by individual central
banks, are designed to improve the liquidity conditions in global financial
markets. The central banks continue to work together closely and will take
appropriate steps to address the ongoing pressures.
Federal Reserve Actions
The Federal Open Market Committee has
authorized a $180 billion expansion of its temporary reciprocal currency
arrangements (swap lines). This increased capacity will be available to
provide dollar funding for both term and overnight liquidity operations by the
other central banks.
The FOMC has authorized increases in the existing swap lines with the ECB and
the Swiss National Bank. These larger facilities will now support the
provision of U.S. dollar liquidity in amounts of up to $110 billion by the ECB,
an increase of $55 billion, and up to $27 billion by the Swiss National Bank, an
increase of $15 billion.
In addition, new swap facilities have been authorized with the Bank of Japan,
the Bank of England, and the Bank of Canada. These facilities will support the
provision of U.S. dollar liquidity in amounts of up to $60 billion by the Bank
of Japan, $40 billion by the Bank of England, and $10 billion by the Bank of
Canada.
All of these reciprocal currency arrangements have been authorized through
January 30, 2009.
Information on Related Actions Being Taken by Other Central
Banks
Information on the actions that will be taken by other
central banks is available at the following websites:
Bank of Canada 
Bank of
England
European
Central Bank
Bank of Japan
Swiss National Bank
