(Bloomberg) — The Federal Reserve and five other central banks announced coordinated action on Sunday to boost liquidity in their standing US dollar swap arrangements.
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The Fed announced the move with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank in a statement saying the action was designed to “enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.”
“To improve the swap lines’ effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily,” the statement said.
The Fed said daily operations will begin on Monday, March 20 and will continue at least through the end of April.
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