Sveriges Riksbank announced that the Eurosystem has approved its onboarding to the EUREP repo facility, giving it an additional channel to obtain euro liquidity during periods of financial stress. The Riksbank may borrow up to EUR 50 billion by pledging eligible high-quality euro-denominated assets as collateral. The standing facility enables central banks outside the euro area to access backstop euro funding and supports the transmission of euro-area monetary policy. For the Riksbank, EUREP adds a rapid and flexible liquidity tool with minimal counterparty risk. It complements the existing swap agreement with the European Central Bank, under which the Riksbank can borrow euros against Swedish kronor.
Sveriges Riksbank gains access to Eurosystem EUREP repo facility with EUR 50 billion limit
Sveriges Riksbank has been approved to access the Eurosystem’s EUREP repo facility, allowing it to borrow up to EUR 50 billion against eligible high-quality euro-denominated assets. The facility strengthens its crisis liquidity capacity and complements its existing euro swap agreement with the European Central Bank.