The United States Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank announced on Sunday that they are taking action to enhance the provision of liquidity via the standing 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," the banks said. The operations will start on Monday and continue "at least" to the end of April. They explained that the network of swap lines "serve as an important liquidity backstop to ease strains in global funding markets" and are "helping to mitigate the effects of such strains on the supply of credit to households and businesses."
