Fed Agrees to Currency Swaps

Access lines to euro, yen, pound and franc

Central banks have been making efforts to promote liquidity and stability during this financial crisis. One of the tools used to do this is the currency swap line. An agreement has been reached that creates access to lines between the U.S. Federal Reserve and access to euro, yen, pound and franc. Bloomberg reports on the hopes attached to these swap lines:

“Should the need arise, euro, yen, sterling and Swiss francs would be provided to the Federal Reserve via these additional swap arrangements with the relevant central banks,” the Fed said in a statement today. “Central banks continue to work together and are taking steps as appropriate to foster stability in global financial markets.” 

See Also

• Federal Reserve and Currency News
  Information on currencies

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