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News Release - Coordinated Central Bank Action to Address Pressures in Global Money Markets

07 October 2008

Central banks recently announced coordinated actions to expand the provision of U.S. dollar liquidity. Today, the central banks are announcing schedules for term and forward auctions of U.S. dollar liquidity during the fourth quarter of this year. These schedules include dates of any 28-day and 84-day term auctions and two preliminary dates for any forward auctions of U.S. dollar liquidity over year-end. Scheduling of the forward auctions is still tentative and may be adjusted in response to financial market conditions.

Bank of England US Dollar Repo Operations

In parallel with other central banks, the Bank of England is today announcing that it will conduct two forward auctions of U.S. dollar liquidity under the swap facility with the Federal Reserve. Both operations will span the year-end. The preliminary schedule for Bank of England forward auctions of U.S. dollar liquidity is set out below. Confirmation of these dates, as well as the amounts of funds on offer, will be provided nearer to the auctions.

Auction Date Term Settlement Date Maturity Date
10 November
2008
17 days 22 December
2008
8 January
2009
       
24 November
2008
13 days 23 December
2008
5 January
2009

The Bank is currently conducting auctions for $70bn of U.S. dollar liquidity under the swap facility, through an overnight operation of $10bn, and two operations of $30bn with one-week maturity. The Bank's swap facility with the Federal Reserve runs until April 2009.

Information on related actions being taken by other central banks

Information on the actions to be taken by other central banks is available on the following websites:

Federal Reserve System (http://www.federalreserve.gov)
Bank of Canada (http://www.bank-banque-canada.ca/)
Bank of Japan (http://www.boj.or.jp/en/index.htm)
European Central Bank (http://www.ecb.int)
Swiss National Bank (http://www.snb.ch)

More information can be found on the Market Notice published by the Bank on 1 October 2008 (http://www.bankofengland.co.uk/markets/marketnotice081001.pdf).