WASHINGTON (AP) - The Federal Reserve will supply new lines of credit worth up to $287 billion to the central banks of Japan, Switzerland, the United Kingdom and European Union.
The Fed says it will provide up to $45 billion to the Bank of England, $108 billion to the European Central Bank, $99 billion to the Bank of Japan and $35 billion to the Swiss National Bank.
Under currency swap arrangements, which were common last fall when the credit crisis intensified, the Fed provides dollars in exchange for reserves of the other nations’ currencies.
The credit lines are intended to improve credit conditions in global financial markets by increasing the international availability of U.S. dollars.
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