European central banks to offer unlimited dollar liquidity

By William L. Watts
Last update: 2:26 a.m. EDT Oct. 13, 2008Comments: 14
LONDON (MarketWatch) -- The Bank of England, European Central Bank and Swiss National Bank announced Monday they will take whatever measures are needed to ensure sufficient liquidity in money markets. The banks said they would conduct conduct tenders of U.S. dollar funds at 7-, 28- and 84-day maturities. "Counterparties in these operations will be able to borrow any amount they wish against the appropriate collateral in each jurisdiction," the banks said in a joint statement. Swap lines between the U.S. Federal Reserve and the central banks will be increased to provide the quantity of dollars demanded.

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