Central banks to wind down daily US dollar liquidity operations
22 June 2020 Frankfurt
Image: canadastock/shutterstock.com
Major central banks in Europe, the US and Japan are set to reduce the frequency of their emergency seven-day US dollar operations due to a lack of demand and improving market conditions.
As of 1 July, the operations will shift from being offered daily to three times per week, which is still above the pre-crisis frequency of once a week.
The enhanced US dollar operations schedule was launched in reaction to the COVID-19-fuelled market disruption in March and include the central banks of Canada, England, Japan, Switzerland, the US and Europe.
In a joint statement, the banks say they “stand ready to re-adjust the provision of US dollar liquidity as warranted by market conditions”.
The central banks will also continue to hold weekly 84-day maturity operations which will be offered weekly.
As of 1 July, the operations will shift from being offered daily to three times per week, which is still above the pre-crisis frequency of once a week.
The enhanced US dollar operations schedule was launched in reaction to the COVID-19-fuelled market disruption in March and include the central banks of Canada, England, Japan, Switzerland, the US and Europe.
In a joint statement, the banks say they “stand ready to re-adjust the provision of US dollar liquidity as warranted by market conditions”.
The central banks will also continue to hold weekly 84-day maturity operations which will be offered weekly.
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