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SNB says central banks scale back dollar operations

ZURICH, Aug 20 (Reuters) - The Swiss National Bank (SNB) and other major central banks will cut the frequency of 7-day dollar liquidity operations conducted in partnership with the U.S. Federal Reserve, the SNB said on Thursday.

“In view of continuing improvements in U.S. dollar funding conditions and the low demand at recent 7-day maturity U.S. dollar liquidity-providing operations, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank, in consultation with the Federal Reserve, have jointly decided to further reduce the frequency of their 7-day operations from three times per week to once per week,” Switzerland’s central bank said in a statement, adding the change would become effective on Sept. 1.

The central banks will continue to hold weekly operations with an 84-day maturity, it said. (Reporting by Brenna Hughes Neghaiwi; Editing by Michael Shields)