The world’s biggest central banks today announced swap arrangements that would allow the U.S. Federal Reserve Board to provide foreign currency liquidity to U.S. financial firms.

The Fed, the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank announced the swap arrangements, under which euros, yen, sterling and Swiss francs could be provided to the Fed via these additional swap agreements with the relevant central banks.

If drawn upon, these arrangements would support operations by the Federal Reserve to provide liquidity in sterling in amounts of up to 30 billion British pounds, up to 80 billion euros, up to 10 trillion yen, and up to 40 billion Swiss francs. These foreign currency liquidity swap lines have been authorized through October 30.

The central banks said “they continue to work together and are taking steps as appropriate to foster stability in global financial markets.”

IE