Top central banks move to avoid global liquidity crunch

Central banks from the world’s leading developed economies said on Wednesday they will take coordinated steps to prevent a lack of liquidity in the global financial system, as the euro zone attempts to find a way to stem its debt crisis.

The U.S. Federal Reserve, the European Central Bank and the central banks of Canada, Britain, Japan and Switzerland said in a joint statement they had agreed to lower the cost of existing dollar swap lines by 50 basis points from December 5.

Other measures included setting up bilateral swap arrangements between the central banks so that any bank could tap additional liquidity in their own currencies if necessary. The swap arrangements are good through Feb 1, 2013.

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About Giorgio Bertini

Director at Learning Change Project - Research on society, culture, art, neuroscience, cognition, critical thinking, intelligence, creativity, autopoiesis, self-organization, rhizomes, complexity, systems, networks, leadership, sustainability, thinkers, futures ++
This entry was posted in Credit system, Euro, Europe and tagged , , . Bookmark the permalink.

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