The Bank of England, and five other central banks have announced that they would boost the flow of US dollars through the global financial system in an attempt to calm markets after Swiss bank UBS took over its rival Credit Suisse on Sunday.
The Bank of England, Bank of Canada, Bank of Japan, the European Central Bank, US Federal Reserve and Swiss National Bank said in a joint statement that the move would “enhance the provision of liquidity” and allow banks to borrow directly.
The deal will begin on Monday, remain in place until at least the end of April and will open a network of swap lines between the banks concerned, reports Euronews. Reports says central banks already enabling transactions in US dollars have agreed to provide 7-day US dollars operations on a daily basis.
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