Zurich, Switzerland (GenevaLunch) - The Swiss National Bank announced Monday morning that starting 15 October it will be holding US dollar auctions every Wednesday, a move coordinated with those of four other central banks to improve liquidity in global markets.
The European Central Bank, The US Federal Reserve, the Bank of England and the Bank of Japan announced the new measures measures to improve liquidity in short-term US dollar funding markets. The SNB, in its statement, said: “The BoE, ECB and SNB will conduct tenders of US dollar funding at 7-day, 28-day, and
84-day maturities at fixed interest rates for full allotment. Funds will be provided at a fixed interest rate, set in advance of each operation. Counterparties in these operations will be able to borrow any amount they wish against the appropriate collateral in each jurisdiction. Accordingly, sizes of the reciprocal currency arrangements (swap lines) between the Federal Reserve and the BoE, the ECB, and the SNB will be increased to accommodate whatever quantity of US dollar funding is demanded. The Bank of Japan will
be considering the introduction of similar measures.”
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News story, GenevaLunch, 13 October 2008.
Filed under: Uncategorized
Tags: financial markets, global financial crisis, Swiss National Bank
October 14th, 2008 at 4:31 pm
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