The European Central Bank (ECB) announced today that it intends to expand access to its euro liquidity fund, making it globally available, with the aim of strengthening the single European currency internationally.
REPO lines allow central banks to borrow funds in euros from the ECB at favorable interest rates. Until now, these lines have been limited to a few countries, mainly in Eastern Europe.
ECB President Christine Lagarde has long believed that this mechanism is a good tool for strengthening the euro on a global level.
"The ECB needs to prepare for a more volatile environment," Christine Lagarde said at the Munich Security Conference, the British agency Reuters reported.
This mechanism will be available from the third quarter of 2026 for central banks around the world, provided that they are not excluded for various offenses, such as money laundering, terrorist financing or international sanctions, the ECB said in a statement.
This decision was made as investors are constantly assessing the status of the dollar, due to the unpredictability of US President Donald Trump's economic policies.
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