Last Monday the Governing Council took a further step with the decision – announced together with Bank of England and the Swiss National Bank – to conduct operations at 7-, 28- and 84-day maturities at fixed interest rates and with full allotment.
As a result of this decision, euro area counterparties will be able to borrow as much USD liquidity as they wish against eligible euro-denominated collateral. The supply of USD is guaranteed by an unlimited temporary reciprocal currency arrangement between the Federal Reserve and the ECB that will remain in place for as long as needed.