Kiwi's get to eat this week with new facility with US Federal Reserve.

Date 29 October 2008
Time 10:00am

RBNZ, Federal Reserve announce USD facility

The United States Federal Reserve and the Reserve Bank of New Zealand
today announced the establishment of a temporary reciprocal currency
arrangement (swap line) to address ongoing elevated pressures in US
dollar short-term funding markets.

The Federal Open Market Committee has approved the Reserve Bank's
request for a swap facility that will support the provision of US dollar
liquidity to the New Zealand markets in amounts of up to USD15 billion.
This reciprocal currency arrangement has been authorized through to 30
April 2009.

Reserve Bank Deputy Governor Grant Spencer said the facility, like those
already established between the Fed and other central banks, is to
provide an additional source of liquidity for the US dollar funding

"While there is no need to use the facility right now, it is useful to
have this capacity if markets become dysfunctional," Mr Spencer said.