The European Central Bank has extended access to the liquidity mechanism in euros, transforming it into a globally available permanent instrument, to strengthen the role of the euro.

The European Central Bank (ECB) has announced the expansion of access to its liquidity provision mechanism in euros, transforming it into a permanent instrument available globally, aimed at strengthening the international role of the single currency.

ECB President Christine Lagarde emphasized the importance of this mechanism in the context of a volatile economic environment, warning that its absence could lead to massive sales of euro-denominated assets during periods of financial stress. The new facility, which will be available from the third quarter of 2026, will allow central banks worldwide to borrow euros from the ECB, except for those excluded for reputational reasons. It will operate in the form of a repo line, providing permanent access to liquidity, with a ceiling of up to 50 billion euros.

The ECB believes that this mechanism will enhance investor confidence in the use of the euro, especially in the context of the reassessment of the status of the US dollar. Lagarde highlighted that for the euro to gain market share, a reform of the financial and economic architecture is necessary.