Headlines
ECB, PBOC extend 45 billion euro liquidity line
Published by Global Banking and Finance Review
Posted on September 8, 2025
1 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 8, 2025
1 min readLast updated: January 22, 2026
The ECB and PBOC have extended their currency swap deal to ensure euro area banks have access to liquidity, maintaining the swap line at 45 billion euros.
FRANKFURT (Reuters) -The European Central Bank and the People's Bank of China have extended for a further three years a currency swap deal aimed at addressing any sudden liquidity shortage that would hamper commercial lenders, the ECB said on Monday.
The arrangement, originally announced in 2013, will run through October 2028, with its maximum size unchanged at 350 billion renminbi and 45 billion euros.
"The arrangement serves as a backstop facility to address potential sudden and temporary CNY liquidity shortages for euro area banks as a result of disruptions in the renminbi market," the ECB said in a statement.
(Reporting by Balazs Koranyi; Editing by Kirsten Donovan)
Liquidity management involves ensuring that a bank or financial institution has enough cash flow to meet its short-term obligations and operational needs.
A central bank is a national financial institution that manages a country's currency, money supply, and interest rates, and oversees the banking system.
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates to achieve macroeconomic goals like controlling inflation and stabilizing currency.
A liquidity line is a financial arrangement that provides access to funds to ensure that institutions can meet their short-term financial obligations.
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