The Riksbank accesses the Eurosystem's EUREP repo facility
News The Eurosystem has approved the onboarding of the Riksbank to its EUREP repo facility, which provides central banks outside the euro area with better access to liquidity in euros. This measure strengthens Sweden’s crisis preparedness and financial stability.
The European Central Bank (ECB) has made EUREP a standing facility that enables central banks outside the euro area to borrow euros against eligible assets. The aim is to support the smooth transmission of monetary policy in the euro area by ensuring the timely, consistent and broad provision of backstop funding to foreign central banks.
Access to EUREP means that the Riksbank can borrow euros by pledging eligible high-quality euro-denominated assets as collateral. The maximum borrowable amount is EUR 50 billion. The facility strengthens the Riksbank’s financial crisis preparedness by providing an additional tool that enables the rapid and flexible provision of liquidity with minimal counterparty risk. EUREP complements the Riksbank’s existing swap agreement with the ECB, which enables it to borrow euros against Swedish kronor as collateral and the facility contributes to strengthening cooperation between the Riksbank and the Eurosystem.