PARIS (MNI) – The following is a verbatim text of the European
Central Bank’s announcement that it is re-opening U.S. dollar liquidity
operations in an attempt to alleviate financial market stress:
In response to the re-emergence of strains in U.S. dollar
short-term funding markets in Europe, the Bank of Canada, the Bank of
England, the European Central Bank (ECB), the Federal Reserve, and the
Swiss National Bank are announcing the re-establishment of temporary
U.S. dollar liquidity swap facilities.
These facilities are designed to help improve liquidity conditions
in U.S. dollar funding markets and to prevent the spread of strains to
other markets and other financial centers. The Bank of Japan will be
considering similar measures soon. Central banks will continue to work
together closely as needed to address pressures in funding markets.
ECB decisions The Governing Council of the ECB decided to
reactivate, in coordination with other central banks, the temporary
liquidity swap lines with the Federal Reserve, and resume US dollar
liquidity-providing operations at terms of 7 and 84 days. These
operations will take the form of repurchase operations against
ECB-eligible collateral and will be carried out as fixed rate tenders
with full allotment. The first operation will be carried out on 11 May
2010.
Information on related actions being taken by other central banks
is available at the following websites:
Federal Reserve Board: http://www.federalreserve.gov
Bank of England: http://www.bankofengland.co.uk
Bank of Japan: http://www.boj.or.jp/en
Swiss National Bank: http://www.snb.ch
Bank of Canada: http://www.bankofcanada.ca
–Paris Newsroom, +331-42-71-55-40; bwolfson@marketnews.com
[TOPICS: M$$EC$,MT$$$$,M$X$$$,MGX$$$,M$$CR$,M$$FX$,M$C$$$,MMUFE$,M$J$$$]
