BIS to operate sterling liquidity facility backed by BoE

The Bank of England has created a sterling-denominated facility with the Bank for International Settlements, opening up a source of global liquidity to a much wider range of central banks.

The move echoes the role the BIS played in the latter half of the twentieth century, when it acted as intermediary to several global swap arrangements in a variety of currencies. More recently, central banks have tended to rely on a network of bilateral swap lines, but this excludes many countries.

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