Friday , April 3 2020
Home / ECB Press Releases / Coordinated central bank action to further enhance the provision of US dollar liquidity

Coordinated central bank action to further enhance the provision of US dollar liquidity

Summary:
Press release20 March 2020ECB and other major central banks to offer 7-day US dollar operations on a daily basisOperations with 84-day maturity continue to be offered weeklyNew frequency effective as of 23 March 2020, to remain in place for as long as appropriate to support smooth functioning of US dollar funding marketsThe 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 further enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements.To improve the swap lines’ effectiveness in providing US dollar funding, these central banks have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily

Topics:
European Central Bank considers the following as important:

This could be interesting, too:

Bank of Japan writes Sources of Changes in Current Account Balances (Projections for Apr.)

FRED Blog writes Unexpected changes to the benchmark U.S. interest rate : Discretion is the better part of valor

New York Fed writes The Value of Opacity in a Banking Crisis

International Settlement writes Leverage and margin spirals in fixed income markets during the Covid-19 crisis

Press release

20 March 2020

  • ECB and other major central banks to offer 7-day US dollar operations on a daily basis
  • Operations with 84-day maturity continue to be offered weekly
  • New frequency effective as of 23 March 2020, to remain in place for as long as appropriate to support smooth functioning of US dollar funding markets

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 further enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements.

To improve the swap lines’ effectiveness in providing US dollar funding, these central banks have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily operations will commence on Monday, 23 March 2020, and will continue at least through the end of April. The central banks also will continue to hold weekly 84-day maturity operations.

The swap lines among these central banks are available standing facilities and serve as an important liquidity backstop to ease strains in global funding markets, thereby helping to mitigate the effects of such strains on the supply of credit to households and businesses, both domestically and abroad.

For media queries, please contact Eva Taylor, tel.: +49 69 1344 7162.

Notes

European Central Bank
Since 1 January 1999 the European Central Bank (ECB) has been responsible for conducting monetary policy for the euro area - the world’s largest economy after the United States.

Leave a Reply

Your email address will not be published. Required fields are marked *