FRANKFURT (MNI) – The European Central Bank drained E16.5 bln from
the banking system in a one-week liquidity absorbing operation, the bank
announced Tuesday.
The amount drained was in line with the desired amount of E16.5
bln, which the ECB on Monday said it intended to drain.
The weighted average allotment rate for the operation was 0.28% and
there were 223 bidders, the bank said.
The bank said Monday that the liquidity absorbing operation would
sterilize the liquidity injected into the banking system, as of last
Friday, resulting from its Securities Markets Program, the formal name
for its plan to purchase public and private bonds on the secondary
market.
The drained liquidity takes the form of fixed-term deposits. These
can be used as collateral in the Eurosystem’s credit operations.
There will be another liquidity draining operation next week, the
bank said Monday.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
[TOPICS: MGX$$$,M$$FX$,M$X$$$,M$G$$$,M$$EC$]
