6 Central Banks Agree to Boost Provision of Dollar Liquidity

Economy Politics

Tokyo, March 16 (Jiji Press)--The Bank of Japan, the Federal Reserve and four other key central banks said Monday they have agreed on a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.

The step will be taken in response to higher demand for dollar funding amid financial market confusion stemming from the coronavirus outbreak.

The central banks, also including the European Central Bank, the Bank of Canada, the Bank of England and the Swiss National Bank, will lower the interest rate applied to dollar funding for private financial institutions. They will also begin offering dollars weekly with an 84-day maturity, in addition to the one-week maturity operations currently offered.

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