The U.S. Federal Reserve Bank announced an expansion of deals with European nations Friday in an effort to stabilize global financial markets.
The Fed said it is boosting reciprocal-currency arrangements with the European Central Bank and the Swiss National Bank by $13 billion.
The agreement allows the Fed to make another $13 billion available to the two central banks. In return, the Fed will receive the reciprocal amount of foreign currency from each country. Under these types of arrangements, the currency 'swaps' get unwound at a later date.
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