TOKYO Oct 31 Six major central banks agreed to
make their web of swap arrangements permanent as a "prudent
liquidity backstop" in case of global financial strains, the
Bank of Japan said on Thursday.
The BOJ said in a statement that it and the U.S. Federal
Reserve, the European Central Bank, the Bank of England and the
central banks of Canada and Switzerland were converting their
"temporary bilateral liquidity swap arrangements" into standing
arrangements that "will remain in place until further notice."
"The existing temporary swap arrangements have helped to
ease strains in financial markets and mitigate their effects on
economic conditions," the announcement said. "The standing
arrangements will continue to serve as a prudent liquidity