Banking - Brazil, Mexico - Fed opens US$30bn swap lines with Latin American central banks

The Fed has established US$30bn in temporary swap lines with the central banks of Brazil (BCB) and Mexico (Banxico) to help improve liquidity conditions in global financial markets.

These reciprocal currency arrangements, like those already established with other central banks, are also designed to mitigate difficulties in obtaining US dollar funding in fundamentally sound and well-managed economies, Fed said in a press release.

"These new facilities will support the provision of US dollar liquidity in amounts of up to US$30bn each by Banco Central do Brasil, Banco de Mexico, Bank of Korea and the Monetary Authority of Singapore," the release reads.

The currency arrangements have been authorized through April 30, 2009.

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