NEWS RELEASE
Date 29 October 2008
Time 10:00am
RBNZ, Federal Reserve announce USD facility
The United States Federal Reserve and the Reserve Bank of New Zealand today announced the establishment of a temporary
reciprocal currency arrangement (swap line) to address ongoing elevated pressures in US dollar short-term funding
markets.
The Federal Open Market Committee has approved the Reserve Bank's request for a swap facility that will support the
provision of US dollar liquidity to the New Zealand markets in amounts of up to USD15 billion. This reciprocal currency
arrangement has been authorized through to 30 April 2009.
Reserve Bank Deputy Governor Grant Spencer said the facility, like those already established between the Fed and other
central banks, is to provide an additional source of liquidity for the US dollar funding market.
"While there is no need to use the facility right now, it is useful to have this capacity if markets become
dysfunctional," Mr Spencer said.
ENDS