The Federal Reserve announced the easing of restrictions on liquidity in financial markets, as part of its stimulus measures to contain the stock market shock from the repercussions of the Covid-19 and the remarkable global economic slowdown.
In order to preserve the ability of banks to continue their lending to households and companies and thereby ease the strong pressure on the money market, the Fed decided to announce a new mechanism that would enable major banks around the world to convert their treasury bills into dollars, but excluded US treasury bonds.
In a related manner, the Federal Reserve’s latest statement came as a complement to the series of incentives followed by the Federal Reserve to support the markets affected by the rapid spread of the virus in the country, especially after the significant decline in stock markets during the last short period.
"The liquidity in the US government debt market has deteriorated very quickly, while banks are witnessing a significant increase in customer deposits, as people have avoided high-risk investments in light of the spread of the pandemic," the Fed said in its statement.
On the other hand, the number of people infected with the Corona virus in the United States of America continues to top the world. As the total confirmed cases in all states of America today reached 215,344 cases, according to an increase of 341 cases today only.
It is also mentioned that the number of deaths in the United States of America amounted to about 5112 deaths, according to 10 cases per day.
And, due to some optimism, the number of people recovering from the Corona virus has increased to about 8878 cases so far.
As of 09:49 GMT, the
US dollar index opened its trading today at the level of 99.681 points,
reaching 99.618 points till press time.