Fed and Global Central Banks Move to Boost Dollar Funding

The Federal Reserve and five other central banks announced coordinated action Sunday to boost liquidity in US dollar swap arrangements, the latest effort by policymakers to ease growing strains in the global financial system.

Central banks involved in the dollar swaps will “increase the frequency of 7-day maturity operations from weekly to daily,” the Fed said in a statement coordinated with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank.

The announcement came ahead of the opening of financial markets in Asia, a move likely timed to show swift action and stem jitters among global investors at the start of the week.