Coordinated central bank action
In September 2008, the Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan and the Swiss National Bank announced co-ordinated measures designed to address continued elevated pressures in US dollar short-term funding markets. These measures, together with other actions taken around that time by individual central banks, were designed to improve the liquidity conditions in global financial markets. For further information see the News Release 18 September 2008. The final operation under this arrangement was conducted on 27 January 2010. For further information see the News Release 27 January 2010.
In May 2010, in response to the re-emergence of strains in US dollar short-term funding markets in Europe, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank announced the re-establishment of temporary U.S. dollar liquidity swap facilities. For further information see:
News Release 10 May 2010
These facilities were extended in December 2010 and June 2011. For further information see:
News Release 21 December 2010
News Release 29 June 2011
In September, three-month US dollar tenders were announced. For further information see:
News Release 15 September 2011
In November 2011, the US dollar swap line was extended until 1 February 2013 and the pricing of the swap line reduced. Weekly and three-monthly tenders will continue until further notice. In addition, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank agreed to establish temporary bilateral liquidity swap arrangements so that liquidity can be provided in each jurisdiction in any of their currencies should market conditions so warrant. At present, there is no immediate need to offer liquidity in currencies other than the US dollar, but the central banks judge it prudent to make the necessary arrangements so that liquidity support could be put into place quickly should the need arise.
News Release 30 November 2011
These arrangements were extended in December 2012. For further information see;
News Release 13 December 2012
In October 2013 the temporary swap lines were converted into standing arrangements, in place until further notice. For further information see;
News Release 31 October 2013
Bank of England action
The Bank has a reciprocal currency agreement (swap line) with the Federal Reserve. Through this arrangement the Federal Reserve provided the Bank with US dollar funding to facilitate these operations. The Bank currently offers to lend US dollar funds via fixed rate tenders with full allotment at a term of 7 days and 3 months.The Bank will keep the frequency and maturity of its US dollar operations under review, in light of market conditions. For further information, see the latest Schedule of Operations.
US dollar repo operations are subject to the terms of the Sterling Monetary Framework Documentation as supplemented and amended by the Supplementary Terms:
Supplementary terms for US Dollar Repo Operations (15k)
Eligibility to Participate
Institutions that are either Operational Standing Facilities participants, or that are OMO participants and part of a group which has an Operational Standing Facilities participant, are eligible to participate in the US dollar repo operations.
US Dollar Repo
Further Background Information