• Germany's news in English
 
app_header_v3

ECB starts swap arrangement with US Federal Reserve

AFP · 6 Apr 2009, 17:36

Published: 06 Apr 2009 17:36 GMT+02:00

An exchange of dollars and euros, commonly known as a swap arrangement, has already allowed the ECB to provide eurozone banks with the dollars they need to fund business operations on this side of the Atlantic, but this was the first such deal to be oriented towards the United States.

An ECB statement out of Frankfurt said it would provide up to €80 billion ($108 billion) to the US central bank, in a move that left analysts puzzled.

The statement said that "should the need arise, euro, yen, sterling and Swiss francs would be provided to the Federal Reserve via these additional swap arrangements" that also included the Bank of Japan, the Bank of England and the Swiss National Bank.

The arrangement announced Monday would remain in effect until October 30, the ECB said.

Bank of America economist Gilles Moec told AFP that ensuring ample access to foreign currencies on major markets was always a good idea, but added: "The only question is: why now?"

Story continues below…

"It would have made more sense a few months ago when the tension on markets was extreme, possibly triggering a demand for alternatives to the dollar on the US market," Moec added. "This is probably a precautionary move," he concluded.

Today's headlines
Left politician who smuggled refugee could lose immunity
Diether Dehm. Photo: DPA.

Die Linke (Left Party) politician Diether Dehm could lose his immunity as an elected official after he admitted to smuggling a refugee into Germany.

Merkel party leader admits sexism is a problem
Jenna Behrends complained that a member of CDU's Berlin government had called her a "big sweet mouse" in front of a large group. Photo: Sophia Kembowski/dpa

A leader of German Chancellor Angela Merkel's conservative party admitted Sunday that it has a problem with sexism in its ranks.

Ethiopia's Bekele nears record in Berlin marathon win
Participants in the Berlin marathon take to the streets on Sunday. Photo:Paul Zinken/dpa

Kenenisa Bekele narrowly missed out on the world record on Sunday as the Ethiopian won the Berlin marathon ahead of former winner Wilson Kipsang.

Europe needs deals to send migrants home: Merkel
Angela Merkal poses with Bulgaria's Prime minister Boyko Borissov (L) and Austrian chancellor Christian Kern (R) in Vienna. Photo: Joe Klamar/AFP

Europe needs to secure more deals to send rejected migrants home, German Chancellor Angela Merkel has told counterparts in Vienna.

Germany sees 'turning point' in birth rate decline
Children at a a kindergarten in Swabia. Photo: Nikolaus Lenau/Flickr

Is Germany's three-decade decline in birth rate now over?

Trump protesters rebuild and tear down 'Berlin Wall'
The 'Stop Trump' protest at the Brandenburg Gate. Photo: DPA.

US expats gathered at the Berlin's iconic Brandenburg Gate on Friday "rebuild" the Berlin Wall and protest US presidential candidate Donald Trump's own proposed wall-building.

Accusation of sexism within Merkel's party creates uproar
Defence Minister Ursula von der Leyen and Chancellor Angela Merkel, two leading women in the CDU party. Photo: DPA.

A young politician from the ranks of Angela Merkel's Christian Democratic Union (CDU) has caused a storm by suggesting that the party is institutionally sexist.

EasyJet 'in talks to buy German airline' to duck Brexit
Photo: DPA

EasyJet is in talks to acquire TUIfly, a board member of the German carrier said Friday, as the British no-frills airline looks for ways to keep flying freely within the EU after Britain quits the bloc.

Symbols of migrant plight to go on show in Bonn museum
Photo: DPA

A people smugglers' car, a dinghy and a life jacket are among items related to Europe's migration crisis due to go on display at a German museum.

Brexit
Green party demand 'quick and easy' citizenship for Brits
Photo: DPA

The Green party has called for Brits living in Germany to be offered a painless path to obtaining dual citizenship as to "reassure them over the future".

Sponsored Article
The Inner Circle: the secret to dating in Berlin
Lifestyle
6 things about Munich that’ll stay with you forever
Sponsored Article
Why Jordan is the ‘Different’ East
Lifestyle
10 pieces of German slang you'll never learn in class
National
Seven great reasons to stay in Germany this September
National
Ouch! Naked swimmer hospitalized after angler hooks his penis
Sponsored Article
Retiring abroad: ensuring your health is covered
National
Six reasons why Berlin is now known as 'the failed city'
National
15 tell-tale signs you’ll never quite master German
Culture
7 American habits that make Germans very, very uncomfortable
Rhineland
Story of a fugitive cow who outwitted police for weeks before capture
Sponsored Article
Life in Jordan: 'Undiscovered treasure'
Culture
Eleven famous Germans with surnames that'll make your sides split
Lifestyle
The best ways to get a visa as an American in Germany
Sponsored Article
The Inner Circle: the secret to dating in Berlin
Gallery
Germany's 17 Olympic gold medals in pictures
14 facts you never knew about the Brandenburg Gate
Society
Ten times Germans proved they really, really love beer
National
Six things you need to know when moving to Germany
Travel
These 10 little-known German towns are a must see
International
German scientists prove birds can sleep while flying
Technology
London v. Berlin: Which is better for startups?
Lifestyle
13 mortifying mistakes German learners always make
Travel
Enter if you dare: Berlin's best abandoned haunts
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
5,644
jobs available
Toytown Germany
Germany's English-speaking crowd