Swap Network

The swap network is a series of bilateral arrangements between the Federal
Reserve and fourteen foreign central banks and the Bank for International
Settlements providing standby reciprocal facilities for obtaining foreign
currencies. The facilities provide for the swap (simultaneous spot
purchase and forward sale) of each other's currency by the Federal Reserve
and the respective foreign central bank. Swap drawings typically have a
three-month maturity, with an understanding that they may be more or less
automatically rolled over for another three months.