Major central banks cut dollar operations with Fed as market stress eases

In a joint statement on Tuesday, The European Central Bank (ECB), the Bank of Japan (BoJ), the Bank of England (BoE) and the Swiss National Bank (SNB) will reduce the frequency of their dollar operations with the US Federal Reserve (Fed) from May 1 as the volatility in financial markets has receded.

Key takeaways

“The BoE, the BoJ, the ECB and the SNB, in consultation with the Fed, have jointly decided to revert the frequency of their  7-day operations from daily to once per week.”

This decision was taken in view of the improvements in US Dollar funding conditions and the low demand at recent US Dollar liquidity-providing operations.

"These central banks stand ready to re-adjust the provision of US dollar liquidity as warranted by market conditions.”