The Swiss National Bank joined a coordinated action to enhance standing US dollar liquidity swap arrangements.
To improve the effectiveness of swap lines for US dollar funding, central banks that currently offer such operations have agreed to increase the frequency of those operations, according to a statement from the Swiss National Bank (SNB) Sunday evening.
The move comes after the failure of Silicon Valley Bank in the US and the UBS takeover of Credit Suisse. In addition to the SNB, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Federal Reserve are taking part.
More Frequent Operations
The banks have agreed to increase the frequency of seven-day maturity operations to a daily basis from a weekly one starting Monday, March 20, and continuing through the end of April at the least.
According to the SNB, the swap lines are a set of available standing facilities serving as an important liquidity backstop that eases strains in global funding markets. They help lessen the impact of strains such as credit to households and businesses.
