Coordinated central bank action to enhance the provision of US dollar liquidity

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank have announced a joint effort to enhance the provision of liquidity through the standing US dollar liquidity swap line arrangements.
As a reminder, the ECB established standing swap arrangements with the above six central banks back in 2023 in order to create a standing arrangement for bilateral swap lines, allowing for the provision of liquidity in foreign currencies if needed due to market conditions, serving as a liquidity backstop to easy financial market strains.
The present coordinated action is aimed at improving the effectiveness of the swap lines in providing US dollar funding, and the central banks have agreed to increase the frequency of 7-day maturity operations from weekly to daily.
Commencing on Monday, 20 March 2023, and continuing at least through the end of April, these daily operations will serve as a crucial liquidity backstop to ease strains in global funding markets. This network of swap lines among central banks represents a set of available standing facilities that will help mitigate the effects of such strains on the supply of credit to households and businesses.