The Federal Reserve, along with the European Central Bank, Bank of England, Bank of Canada, Bank of Japan, and Swiss National Bank, with their Sunday evening (U.S. time) aimed to make dollar swap lines more readily available. The move is a sign of the severity of the risk global central banks see from the series of strains in the banking system worldwide since Silicon Valley Bank failed nine days ago.
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Global central banks announce joint action to keep dollars flowing
The swap lines are now part of a standing liquidity arrangement between leading central banks, but the announcement Sunday is aimed at increasing their effectiveness by making the liquidity available daily instead of weekly.
