Coordinated central bank action to enhance the provision of global US dollar liquidity

PRESS RELEASE

Metadata
Provider: 
ECBECB
URL: 
https://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200315~1fab6a9f1f.en.htmlhttps://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200315~1fab6a9f1f.en.html
Retrieved on: 
Monday, March 16, 2020
Information
Tags: 
Economy, Money, Finance, Financial markets, Overnight indexed swap, Currency swap, Banking, Federal Reserve System, Federal Reserve, Market liquidity, Central bank, Swap
Summary
Key Points: 
  • PRESS RELEASE

    Coordinated central bank action to enhance the provision of global US dollar liquidity

    15 March 2020

    The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements.

  • These central banks have agreed to lower the pricing on the standing US dollar liquidity swap arrangements by 25 basis points, so that the new rate will be the US dollar overnight index swap (OIS) rate plus 25 basis points.
  • To increase the swap lines effectiveness in providing term liquidity, the foreign central banks with regular US dollar liquidity operations have also agreed to begin offering US dollars weekly in each jurisdiction with an 84-day maturity, in addition to the 1-week maturity operations currently offered.
  • The new pricing and maturity offerings will remain in place as long as appropriate to support the smooth functioning of US dollar funding markets.
Copyright: 
2020 ECB. All Rights Reserved.