When the Federal Reserve and other major central banks declared a concerted push to enhance dollar flows into the global financial system, experts suggested the U.S. dollar index is expected to remain bearish in the upcoming days.
The announcement was made on March 19 by the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank. They said they would work together to improve the provision of liquidity through ongoing agreements for U.S. dollar liquidity swap lines.
The U.S. Federal Reserve, Bank of Canada, Bank of England, Bank of Japan, European Central Bank, and Swiss National Bank intend to work together in a coordinated effort to increase dollar liquidity in the world financial system, according to a statement.
The central banks now supplying U.S. dollar operations have decided to enhance the frequency of 7-day maturity from weekly to daily in order to increase the effectiveness of the swap lines in delivering U.S. dollar funding.
“These daily activities will commence on Monday, March 20, 2023, and will continue at least until the end of April,” the statement by the six central banks said.