Central banks open $100 billion liquidity reserve

A consortium of five central banks has agreed a package of measures designed to alleviate pressure in the short-term funding markets. The Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve and the Swiss National Bank have put together a plan that will allow banks to access term funding at discounted rates. The Federal Reserve also agreed a foreign exchange swap line with the ECB and the Swiss National Bank.

Under the Term Auction Facility (TAF) programme, the Fed