Central Banks Provide Dollar Boost through Coordinated Action

Central banks worldwide have taken a coordinated step to increase liquidity by regulating dollar swap lines. This action aims to eliminate the risks faced by the banking systems in the US and Europe. The Federal Reserve and five other major central banks, including the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank, have decided to increase the frequency of US dollar swap line operations.

Increasing the Frequency of US Dollar Swap Line Operations

The central banks have announced that they will take coordinated action to increase liquidity by enhancing the effectiveness of the existing US dollar swap line regulations. They have agreed to increase the frequency of seven-day transactions offered by central banks that already provide dollar funding from weekly to daily operations.

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