The Federal Reserve Bank of New York’s Open Market Trading Desk (the Desk) will conduct small value non-U.S. dollar liquidity swap operations with some foreign central banks that have liquidity swap arrangements with the Federal Reserve Bank of New York. The purpose of these pre-arranged small value operations is to test the operational readiness of the swap arrangements. Such testing has been authorized by the Federal Open Market Committee (FOMC), as noted in the FOMC’s Authorization for Foreign Currency Operations.
The first of these exercises will occur on October 21, 2014, and will consist of the Federal Reserve drawing euros from the euro liquidity swap line with the European Central Bank. The Desk intends to conduct similar periodic exercises in the future.
The results of each exercise will be published on the Federal Reserve Bank of New York’s website.