During the financial crisis following the collapse of Lehman Brothers in September 2008, the funding markets dried up because of an extreme aversion to risk.

Under these circumstances it became difficult for euro area banks to obtain US dollars to fund their USD-denominated assets. To prevent disruptions, such as banks having to sell assets abruptly and thus provoking extreme price movements, the ECB and the Federal Reserve set up a currency swap line, allowing the ECB/Eurosystem to provide US dollars to banks located in the euro area.

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Many of these currency agreements act mainly as a safety net and have never been activated.

This statement came just hours after Swiss authorities orchestrated an emergency takeover of Credit Suisse by UBS.

Credit Suisse — one of the 30 most important financial banks was bleeding money last week after investors and customer confidence collapsed.

If banks are under stress, they might be reluctant to lend. As result we could see credit become more expensive and less available.

And Swap Lines will allow a central bank to obtain foreign currency from the central bank that issues it, and distribute it to commercial banks in their country.

From Monday through at least the end of April, the Fed and other central banks will make dollars available on a daily basis, rather than weekly.

I hope it helps understanding now....

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Admin Aditya will be travelling to South Africa today !!!

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MARK THE DATE: March 26th.

OneWeb's launch of 36 satellites by LVM 3 (aka GSLV MK3) of ISRO

This would be ISRO's 2nd launch for OneWeb

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BREAKING:

Mobile Internet ban extended till tomorrow in Punjab.

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Australia's Victoria Police releases images of six Khalistani extremists who had indulged in violence on January 29th in the name of Khalistan referendum, and requests public assistance.

https://twitter.com/VictoriaPolice/status/1637632080426201091

Full press release by the Australia's Victoria Police.