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The Global Central Bank Released The US Dollar Liquidity &Nbsp; The US Dollar Was Hit Short.

2011/9/16 10:41:00 30

Global Central Banks Release Us Dollar Liquidity

The major central banks suddenly announced the resumption of US dollar liquidity in March.

Bank

At the end of the year, liquidity is tight.

After the announcement, the risk currencies, led by the euro and the pound, rose all the way, and the dollar index plummeted to close to 76.


On Thursday (September 15th), the US dollar traded against a basket of currencies at the end of the European session.

Fall down

After that, the North American market has recovered to above 76.40.


The main global central bank intends to restart the three month US dollar liquidity operation in the fourth quarter.


It is reported that the European Central Bank (ECB), the Federal Reserve (FED), the Swiss central bank (SNB), the Bank of Japan (BOJ) and the Bank of England (BOE) will coordinate actions to provide us dollar liquidity to help banks tide over the liquidity shortage at the end of the year.


The ECB issued a statement saying that the ECB has decided to join hands with the Federal Reserve, the Bank of England, the Bank of Japan and the SNB to take three operations to provide us dollar liquidity for a period of about three months, covering the end of this year.

The European Central Bank's operation will be based on a fixed interest rate and a full allocation basis, which will take place in October 12th, November 9th and December 7th.


The European Central Bank said that the euro zone's banking sector has tightened again in the search for dollar financing recently due to a rise in interbank distrust caused by the European sovereign debt crisis.


The Swiss central bank issued a statement later that it would extend the US dollar liquidity operation with other central banks, providing a 84 day US dollar liquidity operation until the end of the year.


The Bank of Japan has also confirmed its participation in US dollar liquidity operations. The central bank said that the additional three month operation will continue to be implemented before the end of the year, that is, the weekly dollar liquidity operation and the monthly three month dollar operation will continue.


The Federal Reserve has now established a swap mechanism with several central banks, including the BOC, the Bank of England, the European Central Bank, the Swiss bank and the Bank of Japan.

The swap mechanism will provide the central banks with the ability to distribute the US dollar in a comprehensive and fixed interest rate on the local market in order to cope with the renewed capital pressure in the European short term financing market.


Analysts pointed out that the joint action of major global central banks further boosted the risk appetite of the market, helped risk currencies and stock markets rebound significantly, and the risk assets including gold (1772.70, -8.70, -0.49%) and bond markets were immediately encountered.

Sell off

In any case, when the main central bank announced measures to improve liquidity, it was at the time when the financing pressures faced by some large European banks intensified.


 

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