Monday, April 6, 2009

Currency Swapping Arrangement Announced by the Federal Reserve

"The arrangement would enable the Fed to then lend, if needed, to US financial institutions in the currencies offered by the four central banks a total amount equivalent to nearly 290 billion dollars, the Fed said in a statement."

I guess they think they can bounce around from currency to currency, whichever presents the best deal at a particular time. Additionally, Obama seemed to indicate to China that it was perfectly fine if they want to get their investment out of dollars and into a basket of currencies.

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