Central Banks Unite to Increase Dollar Flow and Combat Crisis
The world's leading central banks, including the Federal Reserve, European Central Bank, Bank of England, Bank of Canada, Bank of Japan, and Swiss National Bank, have jointly announced new action to make dollar swap lines more readily available in an effort to keep U.S. dollars flowing easily through the global banking system. This move is aimed at increasing the effectiveness of swap lines by making liquidity available daily instead of weekly, and it highlights the severity of the risk global central banks see from the series of strains in the banking system worldwide since Silicon Valley Bank failed nine days ago.