But aren’t these purchases monetary financing? No, the ECB’s Governing Council limits the overall amount and has the necessary information. There is no such thing as “money printing by national central banks” outside of the Eurosystem framework. In any case, the Governing Council ensures that no Eurosystem operations infringe the prohibition of monetary financing.
Both reports point out to the need of establishing or maintaining standing currency swap lines. From a technical point of view, the coordinated distribution of foreign currency to the domestic bank sector through swap lines is a feasible solution, presenting some potential advantages, including rapid implementation, expeditious settlement and immediate access to the liquidity by banks, and could be very important in emergency situations.