A number of central banks are working together on measures to strengthen liquidity. It concerns an agreement on currency exchange.
The US central bank said on Sunday that it has joined the central banks of Canada, England and Japan, the European Central Bank (ECB) and the Swiss National Bank in a coordinated action to improve the supply of liquidity.
The agreement applies if, in an extraordinary situation, one or more individual banks need liquidity in a currency other than that of their home country, for example dollars.
In order to make currency exchanges more efficient, banks that currently offer dollar transactions have agreed to increase the offer of transactions with a seven-day term from weekly to daily.
This is happening in the extension of the Swiss bank merger and shows how seriously the banks take the troubled situation, writes Reuters.
The agreement comes into force on Monday and will last at least until the end of April, says an announcement from the Fed, the US central bank.
