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News Release
US Dollar Liquidity Operations
13 October 2008
Co-ordinated central bank actions.
In order to provide broad access to liquidity and funding to financial
institutions, the Bank of England, the European Central Bank
(ECB), the Federal Reserve, the Bank of Japan, and the Swiss
National Bank (SNB) are jointly announcing further measures to
improve liquidity in short-term US dollar funding markets.
The Bank of England, ECB and SNB will conduct tenders of US
dollar funding at 7-day, 28-day, and 84-day maturities at fixed
interest rates for full allotment. Funds will be provided at a fixed
interest rate, set in advance of each operation. Counterparties in
these operations will be able to borrow any amount they wish
against the appropriate collateral in each jurisdiction. Accordingly,
sizes of the reciprocal currency arrangements (swap lines) between
the Federal Reserve and the Bank of England, the ECB, and the
SNB will be increased to accommodate whatever quantity of US
dollar funding is demanded. The Bank of Japan will be considering
the introduction of similar measures.
Central banks will continue to work together and are prepared to
take whatever measures are necessary to provide sufficient
liquidity in short-term funding markets.
Bank of England US dollar repo operations
In parallel with other central banks, the Bank of England is today
announcing that its swap line with the Federal Reserve has been
amended so that there is no fixed limit to the amount of dollar
liquidity that can be supplied to the banking system. The Bank of
England will hold tenders of US dollar funding at one week, one
month and three month maturities, at fixed interest rates with
counterparties able to borrow any amount against eligible collateral.
The first tender will be held on Wednesday 15 October for
settlement on Friday 17 October and maturity on Friday 24
The new fixed-rate tender for one week dollars replaces the
previously announced one-week variable rate dollar auctions. The
same extended list of eligible collateral will apply as announced on
3 October.

In order to maintain the existing supply of US dollar liquidity from
Bank of England dollar repo operations, there will be a variable rate
auction on Tuesday 14 October for $30bn, same day settlement, for
maturity on Friday 17 October. The existing overnight dollar
auctions will continue as previously announced and be kept under
Information on related actions being taken by other central
Information on the actions to be taken by other central banks is
available on the following websites:
Federal Reserve System (
Bank of Japan (
European Central Bank (
Swiss National Bank (
More information can be found on the Market Notice published by
the Bank on 13 October 2008