Ersin Arslan / Stockholm, March 20 (HNA) – European Central Bank (ECB) and other major central banks to offer 7-day US dollar operations on a daily basis, with new frequency effective as of March 20, to remain in place at least through the end of April to support smooth functioning of US dollar funding markets, ECB stated in a press release on Monday.
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank announced a coordinated action to 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, the 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 commence on Monday, 20 March 2023, and will continue at least through the end of April” read the ECB press release and added:
“The network of swap lines among these central banks is a set of available standing facilities and serves 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.”