FRANKFURT, Germany (AP) — Six of the world's leading central banks including the U.S. Federal Reserve say they will provide each other with ready supplies of each other's currencies on a standing basis.
The decision announced Thursday extends currency swap arrangements that until now had been considered temporary measures to steady the global financial system.
The central banks are: the Fed, the European Central Bank, the Bank of Japan, the Bank of England, the Bank of Canada and the Swiss National Bank.
The so-called swap lines enable central banks to make sure banks in their countries can always get ready cash in any of the currencies involved, should they need it.
The ECB said the arrangements "have helped to ease strains in financial markets" and "will continue to serve as a prudent liquidity backstop."
Latest Business Articles