Central banks boost dollar liquidity to ease banking crisis

Joint action between six central banks

Leading central banks have co-ordinated to enhance the provision of dollar liquidity in order to stem the growing crisis across the banking sector.

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank have agreed to increase the frequency of seven-day maturity operations from weekly to daily, effective today (20 March). According to a joint statement issued yesterday (19 March), the move will "enhance the provision of liquidity via the standings US dollar liquidity swap line arrangements", improving the effectiveness of the lines in providing US dollar funding. Credit Suisse to 'pre-emptively strengthen liquidity' with $54bn central bank loan Thi...