New dollar auctions and extended swap line with the Federal Reserve

Date 03/02/2009

To address continued pressures in global U.S. dollar funding markets, the temporary reciprocal currency arrangements (swap lines) between the Federal Reserve and other central banks have been extended to October 30, 2009.  This extension currently applies to the swap lines between the Federal Reserve and each of the following central banks:  the Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Canada, Danmarks Nationalbank, the Bank of England, the European Central Bank, the Bank of Korea, the Banco de Mexico, the Reserve Bank of New Zealand, the Norges Bank, the Monetary Authority of Singapore, the Sveriges Riksbank, and the Swiss National Bank.  The Bank of Japan will consider the extension at its next Monetary Policy Meeting.

To manage the continued strains in the markets for short-term borrowing in US dollars, the Riksbank will continue to hold auctions of loans in US dollars as existing loans mature. Auctions will be held on 11 February, 18 February and 1 April. The time to maturity will be 84 days for all auctions. The volume offered in the first auction on February 11 will amount to 10 billion US dollars. Offered volumes in the following two auctions will be announced in connection with the publication of the complete terms and conditions.

As in earlier auctions of US dollars, a minimum interest rate will be set. This will be linked to the expected policy rate in the United States. Complete terms and conditions will be announced two banking days prior to the auctions.

Information from other central banks: