MNI: Central Banks Announce Enhanced Liquidity Provision

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank Sunday announced a coordinated action to enhance the provision of liquidity through standing U.S. dollar liquidity swap line arrangements.

The six central banks have agreed to increase the frequency of 7-day maturity operations from weekly to daily starting Monday and continuing "at least" through the end of April, a statement from the Fed said.

The coordinated statement says the network of swap lines will 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.