FRANCFROT (Reuters) – Four of the world’s biggest central banks said on Tuesday their dollar swap operations with the Federal Reserve would return to a weekly rate next Monday, helped by lower volatility in financial markets.
The central bank of the European zone, the United Kingdom, Japan and Switzerland have decided, in agreement with the American Fed, to return to a weekly frequency of their tenders for seven-day currency swap operations , “in view of the improvement in financing conditions in United States dollars and the weak demand recorded”, can we read on the website of the Swiss National Bank.
“So far daily, (calls for tenders) will be weekly”, from May 1.
Faced with fears about the stability of the global financial system that followed the setbacks of Credit Suisse and American banks, the issuing institutions decided last month in a concerted initiative to improve the supply of the world markets with American dollars by increasing the frequency of currency swap transactions.
But that facility has barely been used since the March 19 announcement.
(Balazs Koranyi, Leika Kihara and William Schomberg, Laetitia Volga, edited by Blandine Hénault)
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