FRANKFURT (MNI) – The European Central Bank said Tuesday it has
decided, in coordination with the central banks of Canada, England,
Japan and Switzerland, to extend the liquidity swap arrangements with
the Federal Reserve up to 1 August 2011 and to continue to conduct US
dollar liquidity-providing operations with a maturity of seven days.
“These Eurosystem operations will continue to take the form of
repurchase operations against eligible collateral and will be carried
out as fixed-rate tenders with full allotment,” the ECB said.
The next dollar liquidity-providing operation will be carried out
this Wednesday, with settlement on Thursday, as a 14-day operation to
cover the year-end, the ECB said.