This follows the earlier move by the ECB, SNB, and BOE
- One-week funding operations now 3 times a week from daily
- Three-month operations will continue at once per week
Major central banks are slowly paring back on the need for dollar funding as the market is seemingly more stable now. In any case, a lot of these operations haven't been fully utilised as of late as dollar liquidity has been sufficient.
But again, as they are slowly weaned off the market, it will be interesting to see the response in the event we do see similar incidents to that of March.
That said, the central banks also reaffirm that they stand ready to readjust the frequency of these operations depending on market conditions.