Central banks have also gradually increased their mutual cooperation, initially through enhanced communication and collective monitoring of market developments, and later on by undertaking coordinated actions to provide funds over the year-end. These actions have included the establishment of the earlier-mentioned foreign exchange swaps.
Containing adverse spill over effects of domestic policy actions remains a major challenge at the global level. US dollar appreciation Since October 2014, the dollar has appreciated by more than 5 per cent in effective terms. While this appreciation remains modest from a historical perspective, signs point to the possibility of further appreciation in the future for a variety of reasons.