Bank of Canada and U.S. Federal Reserve Publish Text of Swap Arrangement

Further to the 9 May 2010 announcement that the Bank of Canada and the U.S. Federal Reserve have agreed to the re-establishment of the US$30 billion swap facility (reciprocal currency arrangement), the Bank of Canada and the U.S. Federal Reserve today published the text of that swap arrangement.

As mentioned in the 9 May 2010 announcement, the Bank judges that it is not necessary for it to draw on its swap facility at this time, but that it is prudent to have the arrangement in place. Should the swap be drawn on, the details of the facilities through which US dollar liquidity would be provided to the Canadian financial system would depend on the specific market circumstances at that time.

The Bank of Canada is closely monitoring global market developments and is committed to providing liquidity as required to support the stability of the Canadian financial system and the functioning of financial markets.

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