Here is a snippet from a Bank of England press release, which was issued earlier today:
"Central banks have been employing co-ordinated measures designed to address the pressures in global money markets. Most recently, central banks have acted together to inject dollars into the overnight markets. Using reciprocal currency arrangements (swap lines) with the Federal Reserve, the Bank of England, the European Central Bank (ECB), and the Swiss National Bank today are announcing the introduction of operations to provide U.S. dollar liquidity with a one-week maturity. These operations are intended to address funding pressures over quarter end. Central banks continue to work together closely and are prepared to take further steps as needed to address the ongoing pressures in funding markets."
Over the last few months, I have seen a lot of these types of press releases. Invariably, they contain lots of phrases like "coordinated measures" and "pressures in the global market". Somewhere, buried deep in the text, is a number. It is always in the billions.
Is anyone keeping count on these liquidity operations? The numbers are getting a little silly. More worryingly, these initiatives to provide emergency help to banks never seem to work.