The United States Federal Reserve (Fed)he bank of canadahe bank of englandhe bank of japanhe European Central Bank and the Swiss National Bank announced this Sunday a coordinated action to improve liquidity provision through permanent interchange line agreements (swaps) of liquidity), in US dollars, according to the agency.
In an official statement, issued in Washington, the Fed and its peers indicated that the move was taken “to improve the effectiveness of swap lines in providing US dollar financing.”
“Central banks that currently offer US dollar trading have agreed increase the frequency of trades with a 7-day expiration from weekly to daily“, indicates the joint document.
Further on, it is stated that “these daily operations will begin tomorrow, Monday, March 20, and will continue at least until the end of April.”
The joint statement pointed out that “the network of swap lines between these central banks is a set of available permanent facilities and serves as an important liquidity support to alleviate tensions in the global financing markets, thus helping to mitigate the effects of such tensions in the supply of credit to households and companies”.
Earlier, the US Treasury Secretary Janet Yellen and Fed Chairman Jerome Powell celebrated on Sunday the purchase of the credit suisse bank by the elder Swiss bank, UBS.
Source: Ambito
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