Central Banks in joint-action to boost dollar liquidity

15th September 2011

This afternoon the European Central Bank have announced that they will:

"in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year." (ECB)

This is a marked increase on the current 7-day maturity period.

We spoke briefly to Mindful Money's freelance economist Shaun Richards, who wrote about this possibility back in August to help explain it's significance.

 

Why has this happened?

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