Today, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing measures designed to address elevated pressures in short-term funding markets.
As part of its continuing provision of liquidity in support of the efficient functioning of financial markets, the Bank of Canada announced today that it will enter into term purchase and resale agreements (term PRA) extending over the calendar year-end as follows:
|Amount||Transaction and Settlement||Maturity|
|$2 billion||13 December 2007||10 January 2008|
|Minimum of $1 billion||18 December 2007||4 January 2008|
The list of eligible securities for these transactions is comprised of the following1:
Securities used in the term PRA transactions will be subject to the same margin requirements as those applicable in SLF transactions.
These transactions will temporarily add assets to the Bank of Canada's balance sheet, offsetting the anticipated seasonal increase in the demand for bank notes.
The total amount of assets acquired on any day through term PRA operations will be announced on the Bank's web site by 4:45 p.m. (ET). The assets will also be reported on the Bank of Canada's balance sheet.
The case for further operations will be reviewed in light of conditions in the money market.
Information on Related Actions Being Taken by Other Central Banks
Information on the actions that will be taken by other central banks is available at the following websites.
Related Statements by Other Central Banks
For further information, please contact: