The European Central Bank is permanently expanding its euro liquidity framework to include nearly 30 foreign central banks, a dramatic shift from a program once reserved for a small circle of Eastern European institutions.
ECB President Christine Lagarde announced the policy during a February 5 press conference, citing rising global fragmentation and economic uncertainty. The permanent facility is set to launch in the third quarter of 2026.
Unlike standard currency swap lines, these repo lines allow foreign central banks to borrow euros by posting high-quality collateral-typically government bonds-rather than exchanging their own domestic currency.
Access, however, is not universal. The ECB explicitly stated certain central banks will be excluded for reputational risks related to financial integrity concerns.