Fed extends swaps to emerging markets, cuts to 1%

The Brazilian, Mexican, Korean and Singapore central banks on Wednesday became the latest to set up swap arrangements with the Federal Reserve to counter dollar liquidity fears.

Each central bank will be able to lend up to $30 billion through the swaps up until 30 April 2009.

The Monetary Authority of Singapore deemed the decision to set up the swap "prudent", owing to the international nature of the territory's financial markets.

"This is a precautionary measure to reassure financial institut