The United States Federal Reserve is taking more steps to help stabilize the economy, with the nation’s central bank coordinating action with other central banks. In a press release issued on March 19, the Federal Reserve stated that it was working with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank.

The goal is to “enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.”

Central banks currently offering U.S. dollar operations will increase the frequency of 7-day maturity operations from weekly to daily. The change will take place from March 20 and will continue at least until the end of April. The hope is that this will act as a liquidity backstop that will ease strains in global funding markets.

(By Rahul Nambiampurath)