More than 30 central banks seek access to ECB euro liquidity line

ECB chief economist Philip Lane spoke on 21 October at the Bund Summit in Shanghai, in a closed session on the non-dollar monetary system. Lane said EUREP, the repo facility the ECB offers to central banks outside the euro area, has drawn interest from more than 30 central banks over the past 6 months. EUREP lets a foreign central bank obtain euro liquidity against high-quality euro-denominated collateral. According to the speech text published by the ECB, onboarding of the first foreign central banks was completed in early October and the facility is open for use from the fourth quarter of 2026.

Under the new framework each line is capped at 50 billion euros, and up to 50 billion euros can be provided same-day in a single operation. Maturities run from 1 day to 1 week and can be rolled over, with pricing set at the main refinancing rate plus a margin. Access is in principle open to all central banks, except those excluded on money-laundering, terrorist-financing or international-sanctions grounds.

In the same 21 October speech Lane said swap lines, the reciprocal currency swaps that require no collateral, should stay limited to partners with strong financial ties to the euro area and clear repayment capacity. Reuters notes that Lagarde had already said the ECB was reviewing its swap network, including the lines with the Fed and the People's Bank of China. According to the report, Lane argued that liquidity lines could also support bond markets across the 21-member euro area through purchases by official reserve managers.