Forwarded from Critical RICE Theory 🧂💡🎣
The Fed is VERY worried about liquidity.
To improve the swap lines' effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily operations will commence on Monday, March 20, 2023, and will continue at least through the end of April.
https://www.federalreserve.gov/newsevents/pressreleases/monetary20230319a.htm
To improve the swap lines' effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily operations will commence on Monday, March 20, 2023, and will continue at least through the end of April.
https://www.federalreserve.gov/newsevents/pressreleases/monetary20230319a.htm