A file photo of the European Central Bank headquarters in Frankfurt, Germany. Reuters/Jana Rodenbusch
The European Central Bank (ECB) is opening its euro-funding backstop to nearly all foreign central banks, aiming to strengthen the single currency’s global role as geopolitical tensions and economic fragmentation reshape the international financial system.
The ECB stated on Feb. 14 that its Governing Council had decided to expand and formalize access to its repo-based euro-lending facility for central banks outside the eurozone, granting access to a broad range of countries unless excluded on grounds such as money laundering, terrorist financing, or international sanctions.
