Circular
Board and Other Central Banks Announce the Establishment of Temporary Reciprocal Currency Arrangements
October 30, 2008
Circular No. 12020

The Federal Reserve, the Banco Central do Brasil, the Banco de Mexico, the Bank of Korea and the Monetary Authority of Singapore are announcing the establishment of temporary reciprocal currency arrangements (swap lines). These facilities, like those already established with other central banks, are designed to help improve liquidity conditions in global financial markets and to mitigate the spread of difficulties in obtaining U.S. dollar funding in fundamentally sound and well managed economies.

Federal Reserve Actions
In response to the heightened stress associated with the global financial turmoil, which has broadened to emerging market economies, the Federal Reserve has authorized the establishment of temporary liquidity swap facilities with the central banks of these four large and systemically important economies. These new facilities will support the provision of U.S. dollar liquidity in amounts of up to $30 billion each by the Banco Central do Brasil, the Banco de Mexico, the Bank of Korea and the Monetary Authority of Singapore.

These reciprocal currency arrangements have been authorized through April 30, 2009.

Please see press release for further details.

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