UPDATE 1-Fed provided foreign cen banks $1.24 bln in swaps

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NEW YORK, May 27 (BestGrowthStock) – The Federal Reserve provided
$1.242 billion of liquidity to foreign central banks in the
latest week, the New York Fed said on Thursday.

The European Central Bank tapped the facility line,
swapping $1.032 billion in the week ending May 26. The terms
for the ECB swap were 84 days at 1.24 percent.

The Bank of Japan also used the facility and swapped $210
million in the same period, the New York Fed said. The terms
for the BOJ swap were also 84 days at 1.24 percent.

The Federal Reserve has established swap arrangements with
the Bank of Canada, the Bank of England, the European Central
Bank, the Swiss National Bank, and the Bank of Japan.

The swap facilities respond to the reemergence of strains
in short-term funding markets in Europe. They are designed to
improve liquidity conditions in global money markets and to
minimize the risk that strains abroad could spread to U.S.
markets, by providing foreign central banks with the capacity
to deliver U.S. dollar funding to institutions in their
jurisdictions, according to the Fed.

The swap lines with the ECB, BOE, SNB and BOJ will provide
these central banks with the capacity to conduct tenders of
U.S. dollars in their local markets at fixed local rates for
full allotment.

Central Bank Amount Terms of

Drawn (U$) Draw

(week ending 5/26)

Bank of Canada 0.00

Bank of England 0.00

Bank of Japan 210 mln 84-day, 1.24 pct

ECB 1.032 bln 84-day, 1.24 pct

SNB 0.00

Total 1.242 bln

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The full Fed report can be found on:

http://www.newyorkfed.org/markets/fxswap/
(Reporting by Vivianne Rodrigues; Editing by Leslie Adler)

UPDATE 1-Fed provided foreign cen banks $1.24 bln in swaps