Posted on 11/18/2022 6:01:14 AM PST by Oldeconomybuyer
FRANKFURT (Reuters) -Euro zone banks are set to repay nearly 300 billion euros ($310 billion) in loans to the European Central Bank next week, the ECB said on Friday, the biggest cash withdrawal from the euro zone's financial system in the euro's 22-year history.
The move is part of ECB efforts to fight record-high inflation in the euro zone by raising the cost of credit and it is its first step towards mopping up even more liquidity next year by trimming its multi-trillion-euro bond portfolio.
The euro zone's central bank said lenders would repay 296 billion euros worth of the 2.1-trillion-euros, multi-year credit they have taken under its Targeted Longer-Term Refinancing Operations (TLTRO) when they get their first chance to do so on Nov. 23.
This is less than the half a trillion euros that analysts were expecting but still the biggest drop in excess liquidity since records began in 2000.
The one-week ESTR rate, which measures borrowing costs for banks after the repayment goes through, fell after the ECB's announcement, as did yields on Italy's two-year government bonds, albeit briefly.
ECB policymakers will look at how the market digests this sudden drop in cash to gauge how fast they can proceed with reversing the ECB's 3.3-trillion-euro Asset Purchase Programme, which they will discuss at their Dec. 15 meeting.
(Excerpt) Read more at news.yahoo.com ...
The Dollar and the Euro are practically equal now............
https://search.brave.com/search?q=dollars+to+euros&source=desktop
Get enough close to parity, and switch to digital currency…
And the hundreds of trillions in real debts and unfunded liabilities.
I KNOW. Bring in millions more third world violent young men and put them on welfare at the expense of the natives. A recipe for success.
I have made some big ticket items of things I would have never considered because of the dollar Euro parity. It is almost equal to the Pound.
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