Global central banks have taken swift action to keep the world’s financial systems running smoothly following the recent failures of two US banks and the rescue of Credit Suisse, which caused shockwaves across global markets.

In response to the ongoing turmoil, six central banks have announced that they will boost the flow of US dollars from Monday. This move marks the first time such measures have been taken since the 2008 financial crisis and the height of the Covid pandemic.

The announcement comes in the wake of Credit Suisse’s rescue by UBS in a state-backed deal, following the collapse of Silicon Valley Bank and Signature Bank in the US last week. The resulting fears of runs on other banks led to sharp falls in stock markets, which continued to plummet on Monday.

Despite assurances from central banks that the global banking system remains safe, concerns persist that other lenders may also run into trouble. Recent interest rate increases have left some banks facing significant losses.

In a statement, the Bank of England, Bank of Japan, Bank of Canada, the European Central Bank, US Federal Reserve and Swiss National Bank emphasized that the coordinated action was designed to keep credit flowing. The move would serve as an “important backstop to ease strains in global funding markets” and mitigate any potential impact on the supply of credit to households and businesses, they added.

The central banks’ swift response has been welcomed by financial experts as a necessary measure to stabilize markets and prevent further damage to the global economy.