SNB joins central banks cutting dollar liquidity operations

ZURICH, June 19 (Reuters) – The Swiss National Bank has joined other major central banks in reducing the frequency of its dollar swap operations from July 1, pointing to falling demand and better dollar funding conditions in its statement on Friday.

“In view of the improvements in U.S. dollar funding conditions and the low demand at recent 7-day maturity U.S. dollar liquidity-providing operations, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank, in consultation with the Federal Reserve, have jointly decided to reduce the frequency of their 7-day operations from daily to three times per week,” the Swiss central bank said in its statement, adding the change would become effective July 1.

“These central banks stand ready to readjust the provision of U.S dollar liquidity as warranted by market conditions.” (Reporting by Brenna Hughes Neghaiwi; Editing by Catherine Evans)

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