Federal Reserve and other central banks convert temporary bilateral liquidity swap arrangements to standing arrangements

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank announced on Thursday that their existing temporary bilateral liquidity swap arrangements are being converted to standing arrangements, that is, arrangements that will remain in place until further notice.

The standing arrangements will constitute a network of bilateral swap lines among the six central banks. These arrangements allow for the provision of liquidity in each jurisdiction in any of the five currencies foreign to that jurisdiction, should the two central banks in a particular bilateral swap arrangement judge that market conditions warrant such action in one of their currencies.

The existing temporary swap arrangements have helped to ease strains in financial markets and mitigate their effects on economic conditions. The standing arrangements will continue to serve as a prudent liquidity backstop.

Related Posts

Previous Post
Mortgage REITs use of repo raising eyebrows at the Fed
Next Post
Three conditions for pre-trade liquidity and collateral analysis tools hitting the market (Finadium subscribers only)

Fill out this field
Fill out this field
Please enter a valid email address.

X

Reset password

Create an account