Fed dollar swap operations slow as funding strains ease
Seven-day swap utilisation has dropped off since May
Major central banks are scaling back their seven-day dollar swap operations, backstopped by the Federal Reserve, in recognition that their banking systems are no longer short of the greenback.
Today, (August 20) the Bank of England, Bank of Japan, European Central Bank and Swiss National Bank said they would reduce the frequency of the seven-day operations to once a week, from three times a week. In March, seven-day operations were conducted daily to ensure non-US banks had sufficient access
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