The Federal Reserve announced last night that it had set up currency swap agreements with the Danish, Australian, Norwegian and Swedish central banks, worth up to $30 billion.
"These facilities, like those already in place with other central banks, are designed to improve liquidity conditions in global financial markets," said the Fed. "Central banks continue to work together during this period of market stress and are prepared to take further steps as the need arises."
The Reserve Bank of Australia and the Sveriges Riksbank now have currency swap agreements of $10 billion each with the Fed, while Danmark's Nationalbank and the Norges Bank have agreements worth $5 billion.
The central banks join agreements already established with the European, Japanese, British, Swiss and Canadian central banks worth a total of $247 billion.
By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2008