The leading Central bankers of the world will improve the provision of dollar liquidity

Central banks of the US, Eurozone, Canada, Britain, Japan and Switzerland Sunday announced coordinated actions to improve the provision of liquidity through dollar swap lines.

the move is aimed to lower the price that banks and companies pay for access to U.S. dollars. This price has risen sharply in recent weeks, as the pandemic coronavirus spooked investors.

In the framework of the joint action plan of the Federal reserve, the European Central Bank, the Bank of Canada, Bank of England, Bank of Japan and the Swiss national Bank agreed to reduce the cost of such swaps by 25 basis points. The new rate will be 25 basis points above the OIS (overnight index swap, overnight index swap).

“to improve the effectiveness of swap lines in providing emergency liquidity to foreign Central banks, carrying out regular operations with liquidity in U.S. dollars, also agreed to begin offering the US dollars weekly in each jurisdiction, with 84-day maturity term, in addition to currently proposed transactions with a weekly maturity,” reads a press release from the ECB.

“New deals on prices and repayment terms will operate as long as is necessary to ensure the smooth functioning of financing markets in US dollars”, — said the ECB.

the Us Central Bank on Sunday to urgently cut its benchmark rate to 0-0. 25%. Fireserv also announced the launch of a massive program of quantitative easing to support the economy amid pandemic coronavirus COVID-19.

the ECB last week kept its key interest rates unchanged, but introduced a package of incentives to combat the economic effects of the virus.