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Measures designed to address elevated
pressures in the short-term US dollar funding
18 September 2008
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 co-ordinated measures
designed to address the continued elevated pressures in short-term US dollar 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.

ECB Decisions
The Governing Council of the ECB has decided to reinforce its joint action with the Federal Reserve by
adding an overnight maturity to its operations providing US dollar funding to Eurosystem counterparties
and by increasing the amounts offered in the Term Auction Facility operations.
As regards the overnight US dollar funding, the Eurosystem shall conduct US dollar liquidity-providing
operations with its counterparties against Eurosystem-eligible collateral, applying a variable rate tender
procedure. It is intended to continue the provision of US dollar liquidity for as long as needed in view of the
prevailing market conditions. The US dollars will be provided by the Federal Reserve to the ECB, up to
USD 40 billion by means of a temporary reciprocal currency arrangement (swap line). The operational
details can be obtained from the ECB's website (
As regards the Term Auction Facility operations, the Governing Council of the ECB has decided, in
conjunction with the Federal Reserve, to increase the amount of US dollar liquidity provided to the
counterparties of the Eurosystem to USD 25 billion for the 28-days maturity operations, and to USD 15
billion for the 84-days maturity operations.
Overall, the dollar funding operations conducted by the Eurosystem could reach an outstanding amount of
USD 110 billion, compared to the current USD 50 billion.

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:
Federal Reserve:
Bank of Canada:
Bank of England:
Bank of Japan:
Swiss National Bank:


European Central Bank
Directorate General Communications
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60314 Frankfurt am Main, Germany
+49 69 1344 7455

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