FRANKFURT (MNI) – The following is the verbatim text from the
European Central Bank’s addition to a joint press-release issued earlier
with other major central banks:
The Governing Council of the European Central Bank (ECB) decided in
co-operation with other central banks the establishment of a temporary
network of reciprocal swap lines.
This action will enable the Eurosystem to provide euro to those
central banks when required, as well as enabling the Eurosystem to
provide liquidity operations, should they be needed, in Japanese yen,
sterling, Swiss francs and Canadian dollars (in addition to the existing
operations in US dollars).
The ECB will regularly conduct US dollar liquidity-providing
operations with a maturity of approximately one week and three months at
the new pricing. The schedule for these operations, which will take the
form of repurchase operations against eligible collateral and will be
carried out as fixed-rate tender procedures with full allotment, will be
published today on the ECB’s website.
In addition, the initial margin for three-month US dollar
operations will be reduced from currently 20% to 12% and weekly updates
of the EUR/USD exchange rate will be introduced in order to carry out
margin calls.
Those changes will be effective as of the operations to be
conducted on 7 December 2011. Further details about the operations will
be made available in the respective modified tender procedure via the
ECB’s Website.
[TOPICS: M$$CR$,M$X$$$,M$$EC$,MI$$$$,MMUFE$]
