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ECB Makes Global Euro Repo Backstop Permanent With €50 Billion Cap

The standing facility is meant to prevent stress‑driven fire sales of euro assets, reinforcing the currency’s international role.

European Central Bank (ECB) President Christine Lagarde walks to address the media after the ECB's Governing Council meeting, at the ECB headquarters in Frankfurt, Germany, December 18, 2025. REUTERS/Heiko Becker//File Photo
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ECB President Christine Lagarde wants to boost the euro's global role
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Overview

  • Starting in the third quarter of 2026, the ECB will offer permanent euro liquidity lines worldwide, announced by President Christine Lagarde at the Munich Security Conference.
  • Access is open to all central banks except those excluded for sanctions or reputational concerns such as money laundering or terrorist financing.
  • The facility provides standing access of up to €50 billion against high‑quality euro‑denominated collateral, in a design comparable to the Federal Reserve’s FIMA repo tool.
  • Some Eurosystem national central banks will extend the repurchase agreements on the ECB’s behalf, with specific counterparties not publicly named.
  • The ECB will stop publishing country‑level usage and will report only aggregate weekly drawings, building on a tool first introduced temporarily in 2020 and used again in 2022.