Central banks reintroduce 3-month dollar operations
FRANKFURT: The European Central Bank said on Thursday it would, alongside other major central banks, reintroduce three-month dollar liquidity operations in the fourth quarter.
The ECB said it would hold three separate operations between October and December, adding it would help see banks through the year-end period.
"The European Central Bank has decided, in coordination with the (US) Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year," the ECB said in a statement.
The ECB's operations will be conducted on a fixed rate, full allotment basis, and will be held on Oct. 12, Nov. 9 and Dec. 7.
Recently, euro zone banks have experienced renewed strains in finding dollar funding as distrust between banks has grown due to the sovereign debt crisis.
Copyright Reuters, 2011
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