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3/15, 10:48 PM (Source: TeleTrader)
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Central banks act together to boost liquidity amid coronavirus

The European Central Bank (ECB) said on Sunday that it agreed on coordinated action with several other central banks to boost liquidity amid the coronavirus crisis.

The ECB, the Bank of Canada, the Bank of England, the Bank of Japan, the United States Federal Reserve and the Swiss National Bank decided to "lower the pricing on the standing US dollar liquidity swap arrangements by 25 basis points, so that the new rate will be the US dollar overnight index swap (OIS) rate plus 25 basis points."

The banks also agreed to begin offering US dollars weekly with an 84-day maturity, in addition to the currently offered 1-week maturity operations. The ECB stressed that these measures will remain in place "as long as appropriate to support the smooth functioning of US dollar funding markets."

Breaking the News / NP