The Federal Reserve on Friday announced it was taking steps with five major central banks to enhance the dollar swap lines designed to make dollars available to foreign institutions.

In a statement, the Fed said the central banks would undertake daily 7-day maturity operations rather than weekly ones. The central banks will continue to hold weekly 84-day maturity operations.

The central banks of Canada, England, Japan and Switzerland will take part, along with the European Central Bank. Dollar funding market strain has played a major role in market turmoil, experts say.

Source : Marketwatch