Global central banks to return to weekly swap lines

It has been reported that major central banks will hold dollar funding auctions weekly instead of daily starting May 1, after easing financial conditions.

In the statement made by the European Central Bank, due to improvements in US dollar funding and lower demand in US dollar liquidity supply operations, the central banks of Europe, the United Kingdom, Japan and Switzerland agreed to change the frequency of daily swap line operations. The weekly in consultation with the US Federal Reserve said it had made the decision.

IT WILL BE APPLIED FROM MAY 1

The statement indicated that said decision will be implemented as of May 1 and that central banks are ready to readjust the supply of liquidity in US dollars as required by market conditions.

Following troubles in the US and European financial system last month, the Fed, the central banks of Canada, England, Japan, Europe and Switzerland agreed to increase the frequency of US dollar swap line trading from weekly to daily. The decision was announced on March 20. (AA)