Federal Reserve Board – Coordinated central bank action to enhance the provision of U.S. dollar liquidity

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity through standing US dollar liquidity swap line arrangements. ,

To improve the effectiveness of swap lines in providing US dollar funding, central banks currently offering US dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily operations will begin on Monday, March 20, 2023 and will continue until at least the end of April.

The network of swap lines between these central banks is one of a set of standing facilities available and serves as an important liquidity backstop to ease stress in global funding markets, thereby reducing the supply of credit to households and businesses. Helps reduce the effects of stress.

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