On 14 February 2026, the European Central Bank announced enhancements to its Eurosystem repo facility for central banks (EUREP) to provide more effective and flexible euro liquidity support, ensuring smoother transmission of euro area monetary policy.
The updated EUREP framework will offer standing access, in principle, to a broad set of non-euro area central banks, provided they are not excluded due to concerns such as money laundering, terrorist financing, or international sanctions. By accepting high-quality euro-denominated collateral, the facility allows central banks outside the euro area to quickly address potential euro liquidity shortages. The changes, effective from the third quarter of 2026, aim to broaden the facility’s geographical reach and enhance its relevance for global holders of euro securities.
Since its introduction in 2020, EUREP has operated amid significant structural shifts in the global economy, including geopolitical developments and changes in financial integration. These factors have increased the potential for financial market disruptions and volatility, which could affect the smooth transmission of euro area monetary policy.
Liquidity facilities like EUREP help mitigate such risks by providing timely, consistent, and broad backstop funding for central banks, reducing spillovers from disruptions in euro-denominated funding markets outside the euro area. The enhanced EUREP complements the ECB’s existing swap lines, which remain unchanged.
