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Bank of Canada Announces Swap Facility
with U.S. Federal Reserve as part of
Coordinated Central Bank Actions
Notice - Sunday, May 9, 2010, 21:15 (ET)
In response to the re-emergence 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 re-establishment
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.

Bank of Canada Action
The Bank of Canada and the Federal Reserve have agreed to re-establishment of the
US$30 billion swap facility (reciprocal currency arrangement) that had expired 1
February 2010. This facility would be accessed, should the need arise, to provide
U.S.-dollar liquidity in Canada. If drawn on by the Bank of Canada, the swap would
provide liquidity facilities for use by financial institutions in Canada that are similar in
nature to those being announced today by the other central banks. This swap facility
expires in January 2011.
This agreement provides the Bank of Canada with flexibility to address rapidly
evolving developments in financial markets. The Bank judges that it is not necessary
for it to draw on this swap facility at this time, but that it is prudent to have the
agreement in place. Should the swap be drawn on, the details of the liquidity facilities
provided would depend on the specific market circumstances at the time.
The Bank of Canada is closely monitoring global market developments and is
committed to providing liquidity as required to support the stability of the Canadian
financial system and the functioning of financial markets.

Information on Related Actions Being Taken by
Other Central Banks
Information on the actions taken by other central banks is available at the following
Bank of England
European Central Bank
Federal Reserve System
Bank of Japan
Swiss National Bank

For further information, please contact:
Jeremy Harrison
613 782-8782
Content Type(s): Press, Market notices