The European Central Bank (ECB) announced the commencement of joint USD liquidity operations: "The Governing Council of the European Central Bank (ECB) has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year. These operations will be conducted in addition to the ongoing weekly seven-day operations announced on 10 May 2010. The schedule for these additional operations is as follows:"
|Tender date||Settlement date||Maturity date|
|12 October 2011||13 October 2011||5 January 2012|
|9 November 2011||10 November 2011||2 February 2012|
|7 December 2011||8 December 2011||1 March 2012|
"These will all take the form of repurchase operations against eligible collateral and will be carried out as fixed rate tender procedures with full allotment. Further information on tender procedures can be found on the ECB's website." The move has largely been read as intended to shore up liquidity for European banks and a show of solidarity and cooperation between global central bankers. The European Central Bank is (somewhat reluctantly) becoming an increasingly instrumental institution in ensuring the financial stability of the Eurozone; buying time with its SMP program while the EU leaders implement more permanet solutions to fiscal sustainability and addressing risks in the banking system.
by: Central Bank News