Fed Grabs Another $30B in Currency Swap

Lines set up with banks in Australia, Europe to ease credit
By Kevin Spak,  Newser Staff
Posted Sep 24, 2008 10:00 AM CDT
Federal Reserve Chairman Ben Bernanke arrives at the witness table on Capitol Hill in Washington, Wednesday, Sept. 24, 2008, prior to testifying before the Joint Economic Committee.    (AP Photo/Charles Dharapak)
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(Newser) – The Federal Reserve announced today that it had set up another $30 billion worth of currency swap lines—designed to put more dollars into world markets—in its latest effort to deal with the credit market. The Fed arranged two $10 billion reciprocal circuits with Australia and Sweden’s central banks, and $5 billion lines with Denmark and Norway, Reuters reports.

Federal chief Ben Bernanke, meanwhile, is spending a second day on Capitol Hill in an effort to sell the administration’s bailout plan. “Economic activity appears to have decelerated broadly,” Bernanke told lawmakers. “Stabilization of our financial system is an essential precondition for economic recovery.”