US dollar auctions conducted by the SNB
The SNB has been able to conduct US dollar repo auctions since December 2007. The operations are carried out in coordination with a number of other central banks. On the basis of a swap arrangement, the US Federal Reserve provides participating central banks with US dollars against their currencies, with the aim of countering undesirable tensions on the financial markets. The SNB's repo transactions are covered by collateral eligible for SNB repos. While these measures have no effect on the supply of money in Swiss francs, they enable the SNB's counterparties to gain easier access to US dollar liquidity.
In view of the substantial improvement in conditions on the market for US dollar liquidity, the SNB has decided, in coordination with other central banks, to phase out its US dollar auctions. Auctions for three-month US dollar liquidity were terminated on 30 April 2014. Auctions for seven-day funding will be held until further notice. The standing swap lines among central banks provide a framework for the reintroduction of US dollar liquidity operations if warranted by market conditions.