Economics
Central Banks Coordinate to Boost Global Dollar Liquidity
- U.S., Japan, euro-area, U.K., Switzerland, Canada involved
- Central banks will tap swap lines used during financial crisis
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The Federal Reserve and five counterparts united to ensure that dollars keep flowing around the world after the coronavirus emergency sparked a rush for greenbacks.
In coordinated statements on Sunday, the Fed, Bank of Japan, European Central Bank, Swiss National Bank, Bank of Canada and Bank of England said they would use their swap lines to support the international supply of the world’s reserve currency. They added a weekly offering of dollars over a longer maturity, and reduced the cost of the facility.