Money market tensions and international liquidity provision during the crisis

Raphael Auer, Sébastien Kraenzlin, 14 October 2009

a

A

The recent crisis has triggered a wide spectrum of policy responses, including many policies that were unthinkable two years ago. One of these unthinkable policies was the decision of the world's major central banks to engage in reciprocal swap agreements, which involve a central bank handing out liquidity denominated in foreign currencies to its counterparties.

Topics: International finance
Tags: Central Banks, currency markets, swap