The Fed, the ECB, the Bank of Canada, the Bank of England, the Bank of Japan and the Swiss National Bank to the rescue of the markets, still under stress after the news of the acquisition of Credit Suisse by Ubs for a value of $3.2 billion.
The six central banks announced overnight the start of “coordinated action aimed at strengthening the provision of liquidity through dollar swap lines”.
“In order to improve the effectiveness of swap lines to provide US dollar funding, central banks have decided to increase the frequency of operations to 7 days. Trades will be made every day, instead of on a weekly basis. These operations, carried out every day, will start on Monday, March 20, 2023, and will continue until at least the end of April.
The decision of the central banks, reads the press release,
“it is aimed at guaranteeing important liquidity support, in order to reduce tensions on the global financing markets, therefore to help mitigate the effects of these tensions on the supply of credit to households and businesses”.