Bank of England
- coordinated central bank action to enhance provision of US dollar liquidity
- Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Federal Reserve, Swiss National Bank are today announcing a coordinated action to enhance provision of liquidity via standing US dollar liquidity swap line arrangements
Federal Reserve statements:
- daily operations will commence on Monday and will continue at least through the end of April
- to improve the swap lines’ effectiveness in providing US dollar funding, the central banks currently offering US dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily
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Enhancing swap lines like this is a sure sign that the stability concerns are heightened. Opening the taps is a step back for the tightening cycle.
