New Zealand Reserve Bank to U.S. Federal Reserve: Smack My Bitch Up
October 29th, 2008All together now, let’s strap ourselves to the mast of the Ship of Fools.
Via: AP:
The Federal Reserve says it will supply New Zealand’s Reserve Bank with up to $US15 billion, as part of its ongoing effort to break through a global credit clog.
Under the new “swap” arrangement, the US central bank will provide US dollars to the Reserve Bank of New Zealand in exchange for New Zealand currency.
“This facility, like those already established with other central banks, is designed to help improve liquidity conditions in global financial markets,” the Fed explained in a brief statement.
The goal is to spur banks and other financial institutions to lend more freely, something that will help the US and global economies.
The Fed has set up similar arrangements with the European Central Bank and with central banks in other countries, including Australia, Canada, and Japan.
