Fed, ECB and Others Take Coordinated Steps to Boost Dollar Liquidity; Bitcoin Tops $28K
The Fed said it would increase the frequency of the dollar swap lines with the European Central Bank, the Bank of Japan, the Bank of England, the Bank of Canada and the Swiss National Bank from weekly to daily, starting Monday. The dollar swap lines allow foreign central banks to borrow U.S. dollars while protecting the Fed from downside risks. In a swap, a Foreign central bank swaps its own currency for an equivalent amount of U.S. dollars from the Fed at the market exchange rate. After a pre-determined time, the bank returns the dollars it borrowed, with interest, to the Fed.