14 September 2001

U.S., Bank of England Will Provide Dollar Liquidity

The Federal Reserve -- America's central bank -- issued the following press release September 14 describing a 30-day swap arrangement with the Bank of England to facilitate the functioning of financial markets and provide liquidity in U.S. dollars:

Federal Reserve
Washington, D.C.
For Immediate Release
September 14, 2001

The Federal Reserve and the Bank of England have agreed to establish a temporary swap facility in order to facilitate the functioning of financial markets and provide liquidity in U.S. dollars.

Under the terms of the facility, the Bank of England would be able to draw up to $30 billion [$30,000 million] in exchange for sterling. The U.S. dollar proceeds, would, if necessary, be made available to banks in the United Kingdom to facilitate the settlement of their U.S. dollar transactions. This temporary arrangement will expire in thirty days.