Swap arrangements

Swap arrangements

Short-term reciprocal lines of credit between the Federal Reserve and 14 foreign centeral banks as well as the Bank for International Settlements. Through a swap transactions, the Federal Reserve can, in effect, borrow foreign currency in order to purchase dollars in the foreign exchange market. In doing so, the demand for dollars and the dollar's foreign exchange value are increased. Similarly, the Federal Reserve can temporarily provide dollars to foreign central banks through swap arrangments.

Swap Arrangements

Agreements between 15 central banks and the Bank for International Settlements whereby any of the participating institutions can borrow a foreign currency from one of the other ones in order to buy its own domestic currency on the open market. Swap arrangements allow participating institutions to effect changes on their exchange rates, while still allowing their currencies to trade according to market factors.
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The Chiang Mai Initiative - which started as a series of bilateral swap arrangements in 2000 and has, over the last 14 years, developed into a multilateral currency swap arrangement - was the obvious way to improve cooperation, although it had its skeptics.
The Federal Reserve has established swap arrangements with the Bank of Canada, the Bank of England, the European Central Bank, the Swiss National Bank, and the Bank of Japan.
With the anticipated near term completion of various of these milestones, the company looks forward to providing further updates on each of the projects shortly thereby benefiting from the equity swap arrangements.
He said that the Free Trade Agreementa[euro]s Currency SWAP arrangements and other such steps will further promote economic ties between the two countries.
Tokyo: Japan and Southeast Asian countries are in talks over expanding currency swap arrangements to help cushion their economies in financial emergencies, an official said on Thursday, ahead of a Japan-Asean summit next week.
Under the oil swap arrangements, Azerbaijan, Turkmenistan and Kazakhstan have each provided Iran with some crude oil over the years.
TOKYO, Oct 31 (KUNA) -- World's six major central banks will make their temporary currency swap arrangements permanent in order to maintain the existing functionality and stability of the financial market.
Six major central banks said on Thursday they would make their web of currency swap arrangements permanent as a "prudent liquidity backstop" in case of future global financial strains.
Under swap arrangements, two entities -- companies or governments -- agree to exchange one currency for another at a predetermined rate and interest.
Guardian Care Homes (GCH), which is responsible for the welfare of more than 1,000 residents, was sold in two interest rate swap arrangements worth PS70m between 2007 and 2008 when it sought to refinance loans with Barclays.
Under the oil swap arrangements, Azerbaijan, Turkmenistan, and Kazakhstan each provide Iran with some crude oil that is refined in refineries in northern Iran.
Iran, which faces new UN Security Council sanctions, has swap arrangements with Central Asian producers under which it imports crude into Caspian ports and supplies equivalent barrels to buyers and tanker ships in the Persian Gulf.