Question: can you explain this like I'm 5 ? "To improve the swap lines' effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily operations will commence on Monday, March 20, 2023, and will continue at least through the end of April."
Answer: Ok, let's imagine you and your friend like to share toys. Sometimes, your friend has a really cool toy that you really want to play with, but you don't have any toys to give in exchange. So, your friend might lend you the toy for a little while and you promise to give them something else back later.
In the same way, countries can lend each other money when they need it. Sometimes, countries need US dollars but they don't have any to give in exchange. So, other countries (called "central banks") might lend them some US dollars for a little while and the first country promises to pay them back later.
Now, the central banks that lend US dollars have decided to make it easier for other countries to borrow money by making these lending operations happen more often. Before, they would lend money once a week, but now they will lend money every day. This will start on March 20th, 2023, and will continue for at least a month.
Answer: Ok, let's imagine you and your friend like to share toys. Sometimes, your friend has a really cool toy that you really want to play with, but you don't have any toys to give in exchange. So, your friend might lend you the toy for a little while and you promise to give them something else back later.
In the same way, countries can lend each other money when they need it. Sometimes, countries need US dollars but they don't have any to give in exchange. So, other countries (called "central banks") might lend them some US dollars for a little while and the first country promises to pay them back later.
Now, the central banks that lend US dollars have decided to make it easier for other countries to borrow money by making these lending operations happen more often. Before, they would lend money once a week, but now they will lend money every day. This will start on March 20th, 2023, and will continue for at least a month.