Kuroda flags need for better network of emergency forex liquidity

Haruhiko Kuroda
Bank of Japan governor Haruhiko Kuroda. Image: World Economic Forum

Central banks should increase the number of swap lines they employ so as to better provide emergency liquidity to banks with diverse global businesses, Bank of Japan (BoJ) governor Haruhiko Kuroda said on February 16.

Banks may come to face liquidity shortages in more exotic currencies than those covered by the existing network of major central bank swap lines, the BoJ governor told a gathering of deposit insurers in Tokyo.

"The challenge ahead is to devise frameworks to deal with the case where