• OCTOBER 13, 2008, 5:55 P.M. ET

Fed Provides More Dollars

Move Meant to Allow Europe Central Banks to Improve Liquidity

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LONDON -- The U.S. Federal Reserve on Monday began providing unlimited dollar funding under its swap facilities with three major European central banks, offering a boost to cash-starved European money markets.

The European Central Bank, the Bank of England and the Swiss National Bank said in a joint statement that the terms of their respective currency-swap arrangements with the Fed have been altered "to accommodate whatever quantity of U.S. dollar funding is demanded."

The Fed's system of swap agreements allows global central banks to draw dollars from the Fed to feed into their banking ...

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