As a result, this action – particularly the cut in the interest rate on the U.S. dollar liquidityproviding operations – succeeded in substantially lowering the cost of swapping euros for U.S. dollars (Chart 8).
Then there is more work to be done in assessing the magnitude of liquidity and redemption risks, including the degree to which those risks vary with the type of assets and fund structure. And finally, we will need tools that will be efficient and effective responses to the risks identified.