The ECB has decided on the operational details of the EUREP service, which will allow non-euro central banks to obtain liquidity in euros from the fourth quarter of 2026. Five national central banks, including the Bank of Spain, will manage the operations.
The European Central Bank (ECB) has greenlit the operational launch of the enhanced repurchase service (EUREP) for central banks outside the euro area. The measure, announced on 24 July 2026, specified the process for incorporating interested entities, which will be able to start requesting funds from the fourth quarter of this year.
The new instrument, initially presented on 14 February, aims to ensure a smooth transmission of the single monetary policy and to strengthen the international role of the euro. According to the ECB, the service will be operated by five national central banks: the Deutsche Bundesbank, the Bank of Spain, the Banque de France, the Banca d'Italia, and the De Nederlandsche Bank, under the coordination of the institution itself based in Frankfurt.
The EUREP will allow the participating central banks to obtain liquidity in euros through loans backed by high-quality collateral denominated in the single currency. The price of these loans will be set at the rate of the main refinancing operations (MRO) plus a spread determined by the ECB's Governing Council, with the aim of preserving the backstop nature of the facility.
Each central bank will have access to a maximum limit of €50 billion per line. The operations will have a maturity of between one day and one week, although they may be extended. The ECB has established appropriate risk safeguards to protect the Eurosystem, as detailed by the institution in its official statement.
The facility is initially open to all central banks and monetary authorities outside the eurozone. Those that incur in causes related to money laundering, terrorism financing, or international sanctions will be excluded. Once the incorporation process is completed, entities will be able to access the funds flexibly, without ex ante restrictions.
The ECB has announced that it will publish daily the total volume of liquidity supplied through the EUREP and swap lines, on a weekly basis. This transparency aims to provide market visibility on the use of the instrument.
For central banks of emerging economies or with close trade ties to the eurozone, the EUREP represents a stable avenue for accessing euros without needing to resort to private markets under potentially more burdensome conditions. The measure may also help stabilise exchange rates during times of global financial stress.
The Bank of Spain, as one of the five designated operators, will play an active role in managing these operations, reinforcing its position within the Eurosystem. The entity headed by José Luis Escrivá will be responsible for channeling requests from central banks joining the EUREP through its market operations area.
With this initiative, the ECB expands its toolkit to provide international liquidity, in a context where the demand for euros as a reserve and financing currency remains high. The EUREP adds to the bilateral swap lines that the institution maintains with several central banks outside the EU.
The effective launch is scheduled for the fourth quarter of 2026. Interested central banks must complete the onboarding process, which includes signing legal agreements and verifying compliance with due diligence requirements. The ECB has not specified the number of entities that have already initiated the procedures.
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