Fed sets up sterling, yen, euro, franc swap lines

The Federal Reserve will be able to provide sterling, euro, yen and Swiss franc liquidity to banks with American operations after agreeing swap lines with the relevant monetary authorities.

The arrangement with the European Central Bank will allow the Fed to inject up to €80 billion ($107 billion) at any one time. The Bank of England has authorised sterling loans of up to £30 billion ($44 billion), the Swiss National Bank loans of up to Sfr40 billion ($35 billion) and the Bank of Japan loans