Fed will try to keep the dollar liquid
The Federal Reserve of the United States will work with five banks in order to control the liquidity of the dollar
The US Federal Reserve (Fed) announced a coordinated plan with five other central banks to keep the US dollar liquid during a series of bank failures in the US and Europe.
The plan will use currency swap lines between central banks to shore up liquidity conditions in dollar financial markets.
The plan, which began on March 20 and will continue until at least April 30, will include the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank.
Although the measure comes in the midst of a banking crisis, the Fed did not make a direct reference to it, instead explaining that the plan was implemented to strengthen the supply of credit to households and companies.
(Reference image source: file)
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