Central Banks Coordinate to Boost Dollar Liquidity as Bitcoin Surges to $28K

The US Federal Reserve has joined forces with other major central banks to ensure a steady flow of the US dollar in the global financial system by increasing the frequency of dollar swap lines from weekly to daily. The move aims to calm exchange rate volatility and avoid strains in the supply of credit to households and businesses worldwide. The Fed's backstopping of global dollar liquidity reduces the risk of a worldwide dash-for-cash, which could lead to stress in the financial system. This has cleared the way for an unabated rise in risk assets, including bitcoin, which hit a nine-month high above $28,000 late Sunday, taking the cumulative month-to-date gains to nearly 25%.