Swiss central bank to extend dollar swaps

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The Swiss National Bank will swap currency with the US Federal Reserve through October.

ZURICH - Switzerland's central bank on Tuesday said it would extend a swap arrangement with the Federal Reserve to supply the markets with liquidity in US dollars until October.

"To address continued pressures in global US dollar funding markets, the temporary reciprocal currency arrangements between the Federal Reserve and other central banks have been extended to 30 October 2009", said the Swiss National Bank in a statement.

This action would "continue ... as long as needed", added the central bank.

The central bank announced in September 2008 that it would inject up to USD 60 billion (CHF 69 billion) in liquidity to help ease pressure on money markets, an operation that was previously scheduled to end in April.

[AFP / Expatica]

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