ECB Expands Euro Liquidity Backstop Globally

New permanent facility aims to bolster international role of the euro

Published on Feb. 14, 2026

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The European Central Bank has unveiled plans to widen access to its euro liquidity backstop, making it globally available and permanent in a bid to bolster the international role of the single currency. The new facility will be open to all central banks around the world, provided they are not excluded for reputational reasons, and will provide standing access for up to 50 billion euros.

Why it matters

This move by the ECB is aimed at strengthening the euro's position as a global currency and reducing the dollar's dominance. By providing a guaranteed source of euro liquidity to central banks worldwide, the ECB hopes to increase demand for euro-denominated assets and encourage more international use of the euro.

The details

The new facility, to be available from the third quarter of 2026, will allow central banks to borrow euros from the ECB against high-quality collateral, to be repaid at maturity along with interest. Unlike previous repo lines, which had to be extended periodically, this new facility will provide permanent and flexible access. The ECB says the changes are intended to make the facility more relevant for global holders of euro securities.

  • The new facility will be available starting in the third quarter of 2026.

The players

European Central Bank

The central banking system of the 19 European Union countries that have adopted the euro as their official currency.

Christine Lagarde

The President of the European Central Bank, who has long seen the ECB's repo line facility as a tool to boost the euro's global reach.

U.S. Federal Reserve

The central banking system of the United States, which maintains a similar tool called the FIMA Repo Facility to protect the Treasury market.

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What they’re saying

“We must avoid a situation where that stress triggers fire sales of euro-denominated securities in global funding markets, which could hamper the transmission of our monetary policy.”

— Christine Lagarde, President, European Central Bank (Munich Security Conference)

“The availability of a lender of last resort for central banks worldwide boosts confidence to invest, borrow and trade in euros, knowing that access will be there during market disruptions.”

— Christine Lagarde, President, European Central Bank (Munich Security Conference)

What’s next

The new ECB repo facility will be available starting in the third quarter of 2026.

The takeaway

This move by the ECB is a strategic effort to bolster the international role of the euro and reduce the dollar's dominance in global finance. By providing a permanent and flexible backstop for euro liquidity, the ECB aims to increase demand for euro-denominated assets and encourage more widespread use of the single currency worldwide.