US Federal Reserve to cut one-week dollar swap operations with major central banks

The US Federal Reserve will cut the number of seven-day swap operations with major central banks to one tender per week from three from Sept. 1 as funding conditions have improved, the European Central Bank said in a statement on Thursday.

The Fed will, however, maintain its schedule for 84-day tenders with the Bank of England, the Bank of Japan, the ECB and the Swiss National Bank at one per week, the ECB said.

The Fed increased the frequency of its dollar liquidity operations at the height of the coronavirus crisis earlier this year but has already reduced the frequency once before.

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