MNI: Text - Dollar Swap Lines Shifted To Daily From Weekly

By Evan Ryser

     WASHINGTON (MNI) - The Federal Reserve released the following statement

Friday morning: 

     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 further enhance the provision of liquidity

via the standing U.S. dollar liquidity swap line arrangements. 

     To improve the swap lines' effectiveness in providing U.S. dollar funding,

these central banks have agreed to increase the frequency of 7-day maturity

operations from weekly to daily. These daily operations will commence on Monday,

March 23, 2020, and will continue at least through the end of April. The central

banks also will continue to hold weekly 84-day maturity operations. 

     The swap lines among these central banks are available standing facilities

and serve as an important liquidity backstop to ease strains in global funding

markets, thereby helping to mitigate the effects of such strains on the supply

of credit to households and businesses, both domestically and abroad.

--MNI Washington Bureau; +1 202 371 2121; email: evan.ryser@marketnews.com

[TOPICS: MMUFE$,M$U$$$,MT$$$$,M$$CR$,MGU$$$]