This reinvestment policy implies that the ECB will maintain a large portfolio of assets on its balance sheet for a pronounced period of time. Alongside low policy rates this will ensure that financial conditions will remain accommodative even when the net asset purchases have been reduced to zero.
Our gross international reserves, which stood at $ billion as of end-November 2021, continue to provide ample cushion against unforeseen demand for foreign exchange liquidity. This is equivalent to 10.2 months’ worth of imports of goods and payments of services and primary income. It is also about six to nine times the country’s short-term external debt, based on residual and original maturity, respectively.