Fed reestablishes USD swap lines with BoC, BoE, BoJ, SNB and ECB

"The US Federal Reserve along with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank announce a coordinated action to further enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements," Reuters reported on Friday.

"The central banks have agreed to increase the frequency of 7-day maturity operations from weekly to daily," Reuters added. "These daily operations will commence on Monday, March 23, 2020, and will continue at least through the end of April."

The central banks further noted that they will continue to hold weekly 84-day maturity operations.

Market reaction

Wall Street's main indexes pared their losses on this development. As of writing, the Dow Jones Industrial Average and the Nasdaq Composite were up 0.45% and 1.5%, respectively, while the S&P 500 was flat on the day.