MNI: Text - Federal Reserve Announces Expanded Swap Lines

     WASHINGTON (MNI) - The Federal Reserve released the following statement

announcing expanded temporary swap lines:

     The Federal Reserve on Thursday announced the establishment of temporary

U.S. dollar liquidity arrangements (swap lines) with the Reserve Bank of

Australia, the Banco Central do Brasil, the Danmarks Nationalbank (Denmark), the

Bank of Korea, the Banco de Mexico, the Norges Bank (Norway), the Reserve Bank

of New Zealand, the Monetary Authority of Singapore, and the Sveriges Riksbank

(Sweden). These facilities, like those already established between the Federal

Reserve and other central banks, are designed to help lessen strains in global

U.S. dollar funding markets, thereby mitigating the effects of these strains on

the supply of credit to households and businesses, both domestically and abroad.

     These new facilities will support the provision of U.S. dollar liquidity in

amounts up to $60 billion each for the Reserve Bank of Australia, the Banco

Central do Brasil, the Bank of Korea, the Banco de Mexico, the Monetary

Authority of Singapore, and the Sveriges Riksbank and $30 billion each for the

Danmarks Nationalbank, the Norges Bank, and the Reserve Bank of New Zealand.

These U.S. dollar liquidity arrangements will be in place for at least six

months. 

     The Federal Reserve also has standing U.S. dollar liquidity swap lines with

the Bank of Canada, the Bank of England, the Bank of Japan, the European Central

Bank, and the Swiss National Bank.

--MNI Washington Bureau; +1 202 371 2121; email: evan.ryser@marketnews.com

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