06/03/2019 (Agence Europe) – On Tuesday, 5 March, the European Central Bank (ECB) and the Bank of England announced that they have decided to activate a reciprocal currency swap line as part of their preparations for a possible no-deal exit from the EU by the UK at the end of March. Under this swap agreement, the aim of which is to ensure there is sufficient liquidity, the Bank of England may lend euros provided by the ECB to British banks on a weekly basis; the ECB will receive pounds sterling from the Bank of England in exchange. The European System of Central Banks is also standing by to provide Eurozone banks with sterling, if required. This scheme is part of a network of similar agreements that has been in place since October 2013 and also includes the Bank of Canada, the Bank of Japan, the Federal Reserve Bank and the Swiss National Bank. (MB)