It would be used in those exceptional situations when countries with sound fundamentals suffer from financial market disruptions – such as foreign currency liquidity shortages or sudden stops in capital inflows – caused by contagion from major (e.g. Lehmantype) external shocks .
The CTRF would offer liquidity on a bilateral basis for customized variable terms of up to one month and be available to a range of counterparties, against a broad set of securities, at a fixed price. The specific parameters would be confirmed upon activation.