Central banks announce expanded swap facilities with U.S. Federal Reserve

In response to continued strains in short-term funding markets, central banks today are announcing further coordinated actions to expand significantly the capacity to provide U.S. dollar liquidity. Central banks will continue to work together closely and are prepared to take appropriate steps as needed to address funding pressures.

Norges Bank Action

Norges Bank and the Federal Reserve have agreed to increase the existing swap facility (reciprocal currency arrangement) from US$5 to US$15 billion. Should the need arise, Norges Bank can access the facility to provide U.S. dollar liquidity in Norway. The expanded swap facility expires on 30 April 2009. Eight other central banks have also increased their existing swap lines with the Federal Reserve.

“This expanded agreement provides Norges Bank with further flexibility to address strains in short-term funding markets towards year-end and into the new year. Norges Bank continues to closely monitor market developments and will consider measures which will contribute to improving the functioning of the Norwegian money market”, says Governor Svein Gjedrem.

Information on Related Actions Being Taken by Other Central Banks

Information on the actions taken by the other central banks is available at the following websites:
www.federalreserve.gov
www.ecb.int
www.boj.or.jp
www.bankofengland.co.uk
www.snb.ch
www.bankofcanada.ca
www.nationalbanken.dk
www.riksbanken.se
www.rba.gov.au