The demand for U.S. currency has grown notably relative to nominal GDP, the Treasury Department now holds large balances in its account at the Fed as an important part of its cash management, and foreign central banks hold larger deposits than in the past. In addition, the demand from commercial banks for deposits at the Fed--that is, “reserves”-appears to have increased substantially.
Finally, let me recall that the Governing Council welcomes the economic and financial adjustment programme which was agreed by the Irish government following the successful conclusion of the negotiations with the European Commission, in liaison with the ECB, and the International Monetary Fund. The programme contains the necessary elements to bring about a sustainable stabilisation of the Irish economy.