The TARGET2-Securities (T2S) platform that went live in June 2015 is now a cornerstone of the capital markets union project and has given a strong impetus to promoting and creating harmonised, integrated and efficient euro payments and securities posttrade services. The ECB is also acting as a catalyst in the creation of a truly single European market for payments and securities.
However, while we are paying around 5 per cent (linked to the current repo rate) on these transactions, we earn very little on our holding of foreign exchange reserves. This is because the ongoing global financial crisis has resulted in abnormally low interest rates in the advanced economies. And it is the currencies of these countries that are held as our reserves.