Central banks want to improve the supply of the dollar. The ECB and the US Federal Reserve are in “coordinated action” to calm financial markets.
The European Central Bank (ECB), the US Federal Reserve and the US, Japan, UK, Swiss and Canadian central banks announced a “coordinated measure” to facilitate dollar banking and thereby calm financial markets.
The so-called clearing operations, through which central banks exchange money with each other, will be expanded from Monday, as the respective central banks announced on Sunday evening. Better dollars should be supplied to non-US central banks.
Swaps are important liquidity protection
Central banks announced that they agreed to increase the seven-day dollar swap frequency from weekly to daily.
The statement said the swaps “are an important liquidity protection to alleviate tensions in global financial markets, thereby helping to mitigate the impact of such tensions on household and corporate loans.”
UBS acquires Credit Suisse
Recently, major Swiss bank UBS announced that it would take over its struggling rival, Credit Suisse, for three billion francs.
UBS and Credit Suisse are among 30 banks worldwide classified as “too big to fail” because their failure would have a devastating impact on the global economy.
Credit Suisse Goes Down
Credit Suisse has come under more pressure lately after a previous series of scandals, including the closing of two US banks, Silicon Valley Bank and Signature Bank, which has worried the financial industry.
The statements of Saudi National Bank from Saudi Arabia, the largest shareholder of Credit Suisse, that it does not want to increase its investments in Switzerland’s second largest bank, caused the prices to fall.
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