ECB launches first euro-Swiss franc swap operation

0 Comments | AFP, October, 2008

FRANKFURT (AFP) — The European Central Bank launched on Monday its first ever one-week swap of Swiss francs for euros in a bid to increase flows of the Swiss currency among eurozone commercial banks.

Banks requested less than the 20 billion euros (27 billion dollars) worth of francs on offer however, the ECB said later, taking a total worth nearly 15.3 billion euros.

Meanwhile, the Swiss National Bank (SNB) carried out a simultaneous operation worth 7.5 billion euros.

The moves ware announced last week and were made possible by an agreement between the ECB and the Swiss National Bank to exchange currencies so the ECB could provide financing to eurozone banks in francs.

The one-week operation saw the central banks first buy euros and sell francs...