BOJ, Fed, ECB, 3 other central banks make swap accords permanent

Reuters

TOKYO, Oct 31 (Reuters) - Six major central banks agreed tomake their web of swap arrangements permanent as a "prudentliquidity backstop" in case of global financial strains, theBank of Japan said on Thursday.

The BOJ said in a statement that it and the U.S. FederalReserve, the European Central Bank, the Bank of England and thecentral banks of Canada and Switzerland were converting their"temporary bilateral liquidity swap arrangements" into standingarrangements that "will remain in place until further notice."

"The existing temporary swap arrangements have helped toease strains in financial markets and mitigate their effects oneconomic conditions," the announcement said. "The standingarrangements will continue to serve as a prudent liquiditybackstop."

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