Cooperation has taken place first through enhanced information sharing and collective monitoring of market developments, and later on by taking coordinate steps to ease liquidity tensions in the global money markets.
The first initiative in this direction was the agreement in December 2007 between the ECB and the US Federal Reserve to grant loans in US dollars to euro area counterparties in connection with the Fed’s Term Auction Facility (TAF). The US dollar-denominated loans to euro area banks were financed through a currency arrangement (swap line) between the two central banks.