New York Usa Canada Japan Switzerland business Europe Banks Federal Reserve Central Bank Bank of England Bitcoin New York Usa Canada Japan Switzerland

Fed, central banks enhance ‘swap lines’ to combat banking crisis

Reading now: 562

The United States Federal Reserve has announced a coordinated effort with five other central banks aimed at keeping the U.S.

dollar flowing amid a series of banking blowups in the U.S. and in Europe.The March 19 announcement from the U.S. Fed comes only a few hours after Swiss-based bank Credit Suisse was bought out by UBS for nearly $2 billion as part of an emergency plan led by Swiss authorities to preserve the country's financial stability.

According to the Federal Reserve Board, a plan to shore up liquidity conditions will be carried out through “swap lines” — an agreement between two central banks to exchange currencies.

Swap lines previously served as an emergency-like action for the Federal Reserve in the 2007-2008 global financial crisis and the 2020 response to the COVID-19 pandemic.

The website is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News