European Central Bank (ECB) Executive Board member Philip R. Lane reported that the first foreign central banks completed onboarding to the enhanced Eurosystem repo facility for central banks (EUREP) in early October. Speaking at the CF40-Euro50 luncheon “Monetary System Beyond the Dollar” in Shanghai, he reviewed the facility’s expanded access and explained how complementary swap lines help protect euro area monetary policy transmission against disruptions in euro funding abroad. More than 30 central banks have expressed interest in EUREP over the past six months. The enhancements, decided earlier in 2026, introduce standing access in principle for all central banks, subject to exclusions notably related to money laundering, terrorist financing or international sanctions. After completing onboarding, central banks can draw from the facility from the fourth quarter of 2026 against high-quality collateral denominated in euros. Each central bank can access up to EUR 50 billion, with individual transactions lasting from one day to one week and potentially being extended. Pricing comprises the main refinancing operations rate plus a Governing Council spread to preserve the facility’s backstop role. Funds can be used without restrictions imposed in advance. Lane described EUREP as primarily supporting global markets for debt securities denominated in euros, including by making longer-duration and less liquid bonds more attractive to foreign reserve managers. Swap lines complement that role by providing euros against local currency rather than requiring euro collateral, with funding reaching domestic banks more directly. Because swaps entail greater risks, Lane argued that access should be limited to central banks capable of repayment, backed by highly rated sovereigns, in jurisdictions where financial disruption could impair euro area monetary policy transmission. Wider international use of the euro could further strengthen monetary policy transmission, but expanding euro liabilities requires monitoring for maturity mismatches and funding vulnerabilities.
European Central Bank reports first foreign central banks onboarded to enhanced euro repo facility
European Central Bank Executive Board member Philip R. Lane reported at a Shanghai luncheon that the first foreign central banks completed onboarding to the enhanced Eurosystem repo facility for central banks in early October. The facility offers eligible central banks up to EUR 50 billion each against high-quality collateral denominated in euros, with access available after onboarding from the fourth quarter of 2026. Lane also outlined how swap lines complement this securities market backstop by supporting foreign banking systems, while warranting tighter eligibility because of their greater risks.