Central banks extend temporary dollar liquidity swap lines

FXstreet.com (Barcelona) - The Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve and the Swiss National Bank announced on Thursday an extension of credit lines they provide to each other by one more year. Initially, the temporary US dollar liquidity swap arrangements were supposed to end on 1 February 2014. Currently they have been prolonged until 1 February 2013.

According to the official release: “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 make a decision on the extension of swap arrangements at its upcoming monetary policy meeting.