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

October 31, 2013

TOKYO, Oct 31 (Reuters) - Six major central banks agreed to make their web of swap arrangements permanent as a "prudent liquidity backstop" in case of global financial strains, the Bank of Japan said on Thursday.

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

"The existing temporary swap arrangements have helped to ease strains in financial markets and mitigate their effects on economic conditions," the announcement said. "The standing arrangements will continue to serve as a prudent liquidity backstop."