World banks in currency swap deal with U.S. Fed

April 6, 2009

6 April 2009

World banks in currency swap deal with U.S. Fed

This article is excerpted from the 6 April 2009 edition of the “Toronto Star”.

Five central banks in Europe, Japan and the United States said on Monday they have agreed currency swap lines that enable the Federal Reserve to provide euro, yen, sterling and Swiss francs to U.S. financial institutions.

Under the agreement, the Bank of England, the European Central Bank, the Swiss National Bank and the Bank of Japan would offer their domestic currencies to the Fed for lending to U.S. financial institutions, should the need arise.

The swap lines, which are authorised until Oct. 30, provide up to 30 billion British pounds, 80 billion euros, 10 trillion yen, and 40 billion Swiss francs to American companies, the Fed said in a statement.

"Central banks continue to work together and are taking steps as appropriate to foster stability in global financial markets," the Fed said in a statement. The four other central banks issued similar statements….


Topic(s): 
World Economy & Politics
Information Source: 
Canadian News Channel / International News Channel
Document Type: 
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