The Marriner S. Eccles Federal Reserve Board building in Washington on March 16, 2022. (Saul Loeb/AFP via Getty Images) The U.S. Federal Reserve announced on Sunday that it is collaborating with some of the world’s largest central banks to enhance liquidity provision by strengthening the standing of U.S. dollar liquidity swap line arrangements.
The central banks will increase the frequency of seven-day maturity operations from weekly to daily to improve the effectiveness of the swap lines in providing U.S. dollar funding, the Fed said in a statement .
Apart from the Fed, other central banks participating in the coordinated action include the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank.
“The network of swap lines among these central banks is a set of available standing facilities and serve as an important liquidity backstop to ease strains in global funding markets, […]
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