Central banks make cash swaps permanent as a crisis backstop

FRANKFURT — Central banks in the United States and other advanced economies said Thursday that emergency currency swap lines established during the global financial crisis will be made permanent, providing safeguards against future turbulence.

Temporary arrangements between the European Central Bank, Federal Reserve, Bank of Canada, Bank of England, Swiss National Bank, and Bank of Japan will be converted into standing facilities.

‘‘It’s a very sensible maneuver,’’ said Julian Callow, chief international economist at Barclays in London. “Since the financial crisis it’s clear that central banks are coordinating much more closely.”


Officials are strengthening ties that were forged after credit markets seized up in 2007 by making dollars, euros, and other currencies available around the clock. The decision comes as the Fed prepares to start tapering its monetary stimulus for the US economy, which threatens to drive global market rates higher.

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‘‘There’s no such thing as too much when it comes to safety nets for global markets,’’ said Daisuke Karakama, at Mizuho Bank Ltd.

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