watermock
04-07-2009, 04:54 AM
Bank of Japan Agrees With Federal Reserve to Swap Dollars, Yen
Share | Email | Print | A A A
By Mayumi Otsuma
April 6 (Bloomberg) -- The Bank of Japan said it agreed with the U.S. Federal Reserve to swap dollars and yen as part of a joint action by five major central banks.
Japan’s central bank will offer up to 10 trillion yen ($100 billion) to its U.S. counterpart through Oct. 30, the bank said in a statement.
The yen-dollar swap agreement was made as the Fed also commenced accords to swap dollars with euros, sterling and Swiss francs with the European Central Bank, the Bank of England and the Swiss National Bank, respectively, according to the statement. The arrangements “would enable the provision of foreign currency liquidity by the Federal Reserve to U.S. financial institutions,” the Bank of Japan said.
Major central banks struck an agreement in September to provide up to $60 billion to local and foreign financial institutions to address a global shortage of dollars in the wake of Lehman Brothers Holdings Inc.’s collapse.
The Bank of Canada, on top of the five banks, participated in the September agreement.
To contact the reporter on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net
Last Updated: April 6, 2009 10:00 EDT
http://www.bloomberg.com/apps/news?pid=20601101&sid=axFxsvFTgE2Y&refer=japan
Share | Email | Print | A A A
By Mayumi Otsuma
April 6 (Bloomberg) -- The Bank of Japan said it agreed with the U.S. Federal Reserve to swap dollars and yen as part of a joint action by five major central banks.
Japan’s central bank will offer up to 10 trillion yen ($100 billion) to its U.S. counterpart through Oct. 30, the bank said in a statement.
The yen-dollar swap agreement was made as the Fed also commenced accords to swap dollars with euros, sterling and Swiss francs with the European Central Bank, the Bank of England and the Swiss National Bank, respectively, according to the statement. The arrangements “would enable the provision of foreign currency liquidity by the Federal Reserve to U.S. financial institutions,” the Bank of Japan said.
Major central banks struck an agreement in September to provide up to $60 billion to local and foreign financial institutions to address a global shortage of dollars in the wake of Lehman Brothers Holdings Inc.’s collapse.
The Bank of Canada, on top of the five banks, participated in the September agreement.
To contact the reporter on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net
Last Updated: April 6, 2009 10:00 EDT
http://www.bloomberg.com/apps/news?pid=20601101&sid=axFxsvFTgE2Y&refer=japan