PRESS RELEASE

Measures designed to address elevated pressures in the short-term us dollar funding markets

29 September 2008

In response to continued strains in short-term funding markets, central banks today are announcing further coordinated actions to expand significantly the capacity to provide US dollar liquidity. Central banks will continue to work together closely and are prepared to take appropriate steps as needed to address funding pressures.

The Federal Open Market Committee of the Federal Reserve of the United States of America and the Governing Council of the European Central Bank (ECB), have decided to double their temporary reciprocal currency arrangements (swap lines) from USD 120 billion to USD 240 billion. These larger facilities will allow expanding the provision of US dollar liquidity in the euro area. This reciprocal swap facility has been authorised through 30 April 2009.

Information on the actions taken by other central banks is available at the following websites:

Bank of Canada: http://www.bank-banque-canada.ca

Bank of England: http://www.bankofengland.co.uk

Bank of Japan: http://www.boj.or.jp

Danmarks Nationalbank: http://www.nationalbanken.dk

Federal Reserve Board: http://www.federalreserve.gov

Norges Bank: http://www.norges-bank.no

Reserve Bank of Australia: http://www.rba.gov.au

Sveriges Riksbank: http://www.riksbank.com

Swiss National Bank: http://www.snb.ch

Bank of Canada

Bank of England

  • Bank of Japan

  • Danmarks Nationalbank

  • Federal Reserve Board

  • Norges Bank

  • Reserve Bank of Australia

  • Sveriges Riksbank

  • Swiss National Bank

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