FRANKFURT (MNI) – The European Central Bank drained E26.5 billion
from the banking system in a one-week liquidity absorbing operation, the
bank said Tuesday.
The amount drained was in line with the desired amount of E26.5
billion.
The total bid volume far exceeded the allotment amount with 93
banks bidding placing a bids worth 86.003 billion but was smaller than
the E162.744 billion of total bids placed last week.
The weighted average allotment rate for the operation was 0.27% as
compared to 0.28% in last week’s operation, the bank said.
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$]
