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IPFS News Link • Federal Reserve

Fed Announces "Enhanced" Central Bank Swap Lines To Ease Dollar Funding Shortage

• https://www.zerohedge.com by Tyler Durden

That happened moments ago when the Fed announced a new round of "enhanced" central bank swap lines with the 5 big central banks, where the biggest difference from the swap lines announced over the weekend is that the frequency of the swap line will increase from weekly to daily.

According to a press release by the Fed, 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. 


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