The Federal Open Market Committee has authorized an extension through 1 August 2011, of its temporary U.S. dollar liquidity swap arrangements with the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank. The swap arrangements, established in May 2010, had been authorized through January 2011.

Bank of Canada Action

The Bank of Canada and the Federal Reserve have agreed to extend their US $30 billion swap facility (reciprocal currency arrangement) to 1 August 2011. This swap facility, re-established in May 2010, was set to expire in January 2011.

The Bank of Canada continues to judge that it is not necessary for it to draw on this swap facility at this time, but that it is prudent to maintain the agreement. Should the swap be drawn on, the details of the liquidity facilities provided would depend on the specific market circumstances at the 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.

Information on Related Actions Being Taken by Other Central Banks

Information on the actions taken by other central banks is available at the following websites.

Bank of England
European Central Bank
Federal Reserve System
Bank of Japan
Swiss National Bank

For further information, please contact:
Jeremy Harrison
613 782-8782