Leading central banks worldwide have jointly announced a series of coordinated actions designed to improve liquidity conditions in global financial markets. The coordinated measures are intended to address heightened tensions in money markets and ensure the continued flow of credit to households and businesses.

Key Measures

• Increased frequency of 7-day operations: Central banks will conduct operations more frequently to provide short-term liquidity.
• Expanded range of eligible collateral: The range of assets accepted as collateral in these operations will be broadened.
• Coordinated foreign exchange swaps: Central banks will engage in coordinated foreign exchange swaps to provide liquidity in various currencies.

Rationale

The coordinated action reflects concerns about the potential impact of recent events on financial stability. By working together, central banks aim to mitigate risks and support economic recovery.

Participating Institutions

The central banks involved in this coordinated effort include:

• The Federal Reserve
• The European Central Bank
• The Bank of England
• The Bank of Japan
• The Swiss National Bank
• The Bank of Canada

These measures are expected to provide significant relief to financial institutions and promote greater confidence in the stability of the global financial system.