Bloomberg News

ECB Lends Dollars to Two Euro-Area Banks in Regular 7-Day Tender

November 02, 2011

Nov. 2 (Bloomberg) -- The European Central Bank said it will lend dollars to two euro-area banks tomorrow.

The ECB today allotted $505 million to two bidders in its regular seven-day liquidity-providing operation at a fixed rate of 1.08 percent. Last week, the Frankfurt-based ECB lent $500 million to one institution. The ECB doesn’t identify the banks it lends to.

European banks need dollars to fund their own lending in the U.S. as well as to clients elsewhere doing business in the world’s leading reserve currency. On Sept. 15, global equity markets rallied after the ECB said it will coordinate with the Federal Reserve to offer a series of three-month dollar loans to

euro-area banks to ensure they have enough of the currency for the rest of the year.

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To contact the reporter on this story: Jeff Black in Frankfurt at jblack25@bloomberg.net

To contact the editor responsible for this story: Matthew Brockett at mbrockett1@bloomberg.net


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