Fed renews currency swap lines with ECB, BOE, SNB and BOC

WASHINGTON Thu Dec 13, 2012 9:07am EST

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WASHINGTON Dec 13 (Reuters) - The Federal Reserve said on Thursday it had extended for another year temporary dollar swap lines with the European Central Bank, Bank of Canada, Bank of England and Swiss National Bank, designed to provide liquidity during times of market strain.

The swaps, set up during the 2007-2009 financial crisis to ease tight money market conditions when banks were afraid to lend to each other, were set to expire on Feb. 1, 2013.

The Fed said the central banks had also renewed until Feb. 1, 2014, bilateral currency swap arrangements that would also provide liquidity "should market conditions so warrant."

"The Bank of Japan will consider an extension of both sets of swap arrangements at its next Monetary Policy Meeting," the Fed said in a statement.

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