Leading Central Banks Announce Further Joint Measures To Boost Dollar Liquidity

- Monday, the U. S. Federal Reserve along with the Bank of England, the European Central Bank, the Bank of Japan and the Swiss National Bank announced further measures to boost liquidity in short-term U.S. dollar funding markets. The central bank joint action is meant to provide broad access to liquidity and funding to financial institutions. Accordingly, the BoE, ECB, and SNB will conduct tenders of U.S. dollar funding at 7-day, 28-day, and 84-day maturities at fixed interest rates for full allotment, the Fed said in a statement. The central banks will provide funds at a fixed interest rate, set in advance of each operation. The Fed statement read counterparties in these operations will be able to borrow any amount they wish against the appropriate collateral in each jurisdiction. Consequently, sizes of the... [read full story]