Archive for September 18th, 2008

Currency Markets in the News

Some Recent Important Central Bank Communications

September 18, 2008

Not surprisingly, the escalating financial market crisis has elicited some special central bank announcements this week and made other scheduled statements more important and less routine than usual.  Below find some links to these public notices. Fed and Others Boost Swap Lines and Take Other Steps to Alleviate Money Market Stress Fed Approves $85 Bridging […] More

Stay-The-Course Message From the Swiss National Bank

September 18, 2008

Swiss monetary policy is reassessed four times each year, not eight as the Fed or Bank of Canada do and not every month as done by central banks in the U.K., Euroland and Australia.  Eight 25-basis points increases between December 2005 and September 2007 lifted the targeted 3-month Libor rate from 0.25% to 2.75%, and […] More

Larry's Blog

Federal Reserve Swap Lines: Some History and Some Thoughts on Their Newest Use

September 18, 2008

Swap lines between the Federal Reserve Bank and other central banks are temporary credit lines that enable the Fed to draw foreign exchange and the other monetary authorities simultaneously to acquire dollars.  The FRS swap network has been around since 1962, when the post-world war II system of fixed dollar exchange rates and dollar/gold convertibility […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Concerted Central Bank Injection of Dollar Liquidity

September 18, 2008

At 07:00 GMT today, the Fed, Bank of Canada, ECB, Bank of England, Swiss National Bank and Bank of Japan announced a $180 billion increase in their swap credit lines to $247 billion.  The plan will enable these banks to boost dollar liquidity to ease the worldwide shortage of dollar funding.  The 3-month euribor lending […] More