LONDON (Reuters) - The European Central Bank is to continue offering commercial banks weekly opportunities to borrow dollar-denominated funding until further notice, the central bank said on Tuesday.
“The Governing Council of the European Central Bank (ECB), in cooperation with the Bank of England, the Bank of Japan and the Swiss National Bank, has decided to continue to offer one week U.S. dollar liquidity-providing operations after 31 July 2014 until further notice,” the ECB said in a statement.
“The operations take the form of repurchase transactions against eligible collateral and are carried out as fixed rate tender procedures with full allotment,” it added, referring to the fact banks can borrow as much as they like.
The ECB has been providing dollar funding in co-operation with the Federal Reserve and a number of other major central banks since the peak of the financial crisis.
The calmer market conditions allowed it to cut the long-running three-month dollar operations in April.
Reporting by Marc Jones