In coordination with other central banks, the Bank of Canada confirms the expiration of its US $30 billion swap facility with the Federal Reserve on 1 February 2010. This facility, which was established to counter pressures in global funding markets, is no longer needed, given the improvements in financial market functioning seen over the past year. Central banks will continue to cooperate as needed.
In Canada, this swap facility was originally established on 18 September 2008, and was amended on 29 September 2008, and 25 June 2009. Although the facility was not drawn on, the Bank of Canada did judge that it was prudent to have the agreement in place, in order to provide it with additional flexibility to address rapidly evolving financial market developments at that time.
The Bank of Canada continues to closely monitor global market developments and remains committed to providing liquidity as required to support the stability of the Canadian financial system and the functioning of financial markets.