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Press Release
May 09, 2010

FOMC statement: Federal Reserve, European
Central Bank, Bank of Canada, Bank of England,
and Swiss National Bank announce
reestablishment of temporary U.S. dollar
liquidity swap facilities
For release at 9:15 p.m. EDT
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In response to the reemergence of strains in U.S. dollar short-term
funding markets in Europe, the Bank of Canada, the Bank of England,
the European Central Bank, the Federal Reserve, and the Swiss
National Bank are announcing the reestablishment of temporary U.S.
dollar liquidity swap facilities. These facilities are designed to help
improve liquidity conditions in U.S. dollar funding markets and to prevent
the spread of strains to other markets and financial centers. The Bank of
Japan will be considering similar measures soon. Central banks will
continue to work together closely as needed to address pressures in
funding markets.
Federal Reserve Actions
The Federal Open Market Committee has authorized temporary
reciprocal currency arrangements (swap lines) with the Bank of Canada,
the Bank of England, the European Central Bank (ECB), and the Swiss
National Bank. The arrangements with the Bank of England, the ECB,
and the Swiss National Bank will provide these central banks with the
capacity to conduct tenders of U.S. dollars in their local markets at fixed
rates for full allotment, similar to arrangements that had been in place
previously. The arrangement with the Bank of Canada would support

drawings of up to $30 billion, as was the case previously.
These swap arrangements have been authorized through January
2011. Further details on these arrangements will be available shortly.
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 (57 KB PDF)

   

Swiss National Bank (60 KB PDF)

   

U.S. Dollar Liquidity Swaps FAQs (51 KB PDF)

Last Update: May 10, 2010

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