Six Central Banks Working Together To Smooth Global Dollar Flows

Six world-leading central banks have taken a rare coordinated action to boost US dollar liquidity and support the supply of credit in markets, amidst fears of further financial crisis.

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, Federal Reserve, and the Swiss National Bank announced their plan on Sunday; noting that it would serve as an important insurance against strains in global funding markets.

This announcement follows UBS’ purchase of Credit Suisse – a 167-year-old investment banking giant — for £2.66bn.

The current situation differs from 2008 in that authorities were swift to intervene to try prevent any disorderly collapse.