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Cbanks set currency swap lines via Fed for US banks

Published 04/06/2009, 10:00 AM
Updated 04/06/2009, 10:08 AM

TOKYO, April 6 (Reuters) - Five central banks in Europe, Japan and the United States have agreed currency swap lines that enable the Federal Reserve to provide euro, yen, sterling and Swiss francs to U.S. financial institutions, the Bank of Japan said on Monday.

Under the agreement, the Bank of England, the European Central Bank, the Swiss National Bank and the BOJ would offer their domestic currencies to the Fed for lending to U.S. financial institutions, should the need arise, it said in a statement.

The BOJ said that under a temporary swap agreement that expires on Oct. 30, it would provide up to 10 trillion yen ($99 billion) to the Fed. ($1=100.77 Yen) (Reporting by Leika Kihara; editing by David Stamp)

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