European Central Bank extends the existing swap arrangements with other central banks

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2012-12-14

The Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve and the Swiss National Bank are today announcing an extension of the existing temporary US dollar liquidity swap arrangements until 1 February 2014. Previously, these swap arrangements had been authorised until 1 February 2013.

These central banks are also extending until 1 February 2014 the network of temporary bilateral liquidity swap arrangements that enable the provision of liquidity in each jurisdiction in any of their currencies, should market conditions so warrant. Previously, these bilateral liquidity swap arrangements had been authorised until 1 February 2013.

The Bank of Japan will consider the extension of both sets of swap arrangements at its next monetary policy meeting.

European Central Bank decision

The Governing Council of the European Central Bank (ECB) decided in cooperation with the Bank of Canada, the Bank of England, the Bank of Japan, the Federal Reserve and the Swiss National Bank to extend the temporary network of reciprocal swap lines until 1 February 2014. This action will enable the Eurosystem to continue to provide euro to those central banks when required and to provide to its counterparties, when necessary, Japanese yen, pounds sterling, Swiss francs and Canadian dollars (in addition to the existing liquidity-providing operations in US dollars).

Source: European Central Bank

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