https://www.ecb.europa.eu/press/pr/date/2023/html/ecb.pr230319_1~8d62af24ac.en.html

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements.

What is "US dollar liquidity swap line arrangements." ?

According to ChatGPT:

The US dollar liquidity swap line is a tool used by central banks around the world to ensure the availability of US dollars to their respective financial systems in times of market stress. Here is how it works:

A central bank that needs US dollars for its financial system will approach the Federal Reserve Bank of New York (FRBNY) with a request for a swap line.

If the FRBNY approves the request, the two central banks will agree on the size of the swap line, the interest rate, and the maturity date.

The requesting central bank will then provide collateral to the FRBNY in the form of its own currency or US dollar-denominated securities, which will be held as security for the swap.

The FRBNY will then lend the requested amount of US dollars to the requesting central bank, which will be made available to its domestic financial institutions.

The swap will remain in effect until the maturity date, at which point the original amount of US dollars will be returned to the FRBNY, and the collateral will be returned to the requesting central bank.

The swap line is essentially a short-term loan of US dollars, which helps to ensure that central banks around the world have access to the currency in times of market stress, and thereby helps to maintain stability in the global financial system.