EDUSELL
Financial Market Examiner
Midas Crypto Vault
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
Financial Market Examiner
No Result
View All Result
Home Forex News

ECB To Drain Cash in Offset To New Yield-Capping Scheme

Admin by Admin
June 28, 2022
in Forex News
0
ECB to drain cash
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter
Webinar Webinar

According to reports, the European Central Bank (ECB) will likely drain cash from the banking system. This is  to offset any bond purchases made to cap borrowing costs for indebted euro zone states.

The ECB unveiled plans to stop buying debt and raise its interest rates for the first time in over a decade next month to fight runaway inflation. This is after the bond yields for Italy and other debt-laden countries had surged.

The market turmoil has forced ECB to devise a plan on new bond-buying scheme to curb yields. This leaves it in the difficult position of raising borrowing costs for the euro zone as a whole, while at the same time capping them for some of its weaker members.

It was gathered that the ECB is considering pairing the new bond-purchase scheme with auctions at which banks can park cash at the ECB. This is to give more favourable interest rate than the ordinary rate on deposits.

This would allow the ECB to ‘sterilise’ the bond purchases under the new scheme, in a repeat of its weekly “liquidity-absorbing” operations of a decade ago. These offered banks an interest rate up to that of the ECB’s refinancing operation, then 0.25%.

The planned solution would also be more convenient than selling bonds from countries where borrowing costs are lower, such as Germany, as this would likely cause losses for the local central bank.

 

 

Share on TwitterTweet
Share on Pinterest Share
Share on LinkedIn Share
Share on Digg Share
Tags: Stocks
Institutional Trading Concept Institutional Trading Concept Institutional Trading Concept
ADVERTISEMENT
Previous Post

What is Elrond (EGLD)?

Next Post

Celsius Denies Allegations on CEO Trying to Flee US

Admin

Admin

Next Post
Celsius Sets End Of April As New Deadline For Proof Of Claim

Celsius Denies Allegations on CEO Trying to Flee US

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

  • 99 Subscribers
  • Trending
  • Comments
  • Latest
yen and dollar

FOREX-Yen Flirts With Intervention Level As Dollar See Gains

October 11, 2022
AUD USD pair

Forex: AUD/USD Point To More Downside For The Aussie

October 20, 2022
Mayowa Owolabi on battles traders need to fight

Battle Every Trader Must Fight (Part 1)- Mayowa Owolabi

August 31, 2022
Meta (Ex-Facebook) Fined €1.2 Billion In Landmark EU Ruling

Meta Verified Shows A Company Running Out of Ideas

February 22, 2023
XAGUSD pair

XAG/USD Climbs to Mid-$19.00s

4
Premier League Considering Partnership With NFT Crypto Platform

Premier League considering partnership with NFT crypto platform

2
EUR/USD pair

EUR/USD Recovers from 20-year Lows

2
Binance CEO Supports Terra Classic Raising LUNC Burn Tax To 0.5%

Binance Proof-Of-Reserve Pledge Earns Support Following FTX Crisis

2
AUD USD pair

AUD/USD Recovers Early Lost Ground Amid Modest USD Slide

May 30, 2023
What are dividend stocks

What are Dividend Stocks?

May 30, 2023
This is What Needs To Happen For Bitcoin To Reach $45K This Year According To JPMorgan

This is What Needs To Happen For Bitcoin To Reach $45K This Year According To JPMorgan

May 30, 2023
Three Cryptos That Elon Musk Does Not Want to Sell

Three Cryptos That Elon Musk Does Not Want to Sell

May 30, 2023

Recent News

AUD USD pair

AUD/USD Recovers Early Lost Ground Amid Modest USD Slide

May 30, 2023
What are dividend stocks

What are Dividend Stocks?

May 30, 2023
This is What Needs To Happen For Bitcoin To Reach $45K This Year According To JPMorgan

This is What Needs To Happen For Bitcoin To Reach $45K This Year According To JPMorgan

May 30, 2023
Three Cryptos That Elon Musk Does Not Want to Sell

Three Cryptos That Elon Musk Does Not Want to Sell

May 30, 2023
Financial Market Examiner

Get all the latest Financial Market (Crypto & Forex) news, updates and other relevant resources here.

Follow Us

Browse by Category

  • Crypto News
  • Education
  • Entertainment
  • Forex News
  • Gaming
  • Review
  • Reviews
  • Stocks
  • Uncategorized

Recent News

AUD USD pair

AUD/USD Recovers Early Lost Ground Amid Modest USD Slide

May 30, 2023
What are dividend stocks

What are Dividend Stocks?

May 30, 2023

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

?>