ECB Says Demand for Dollar Loans Surges After Cost Lowered
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The European Central Bank said demand for three-month dollar loans surged after it almost halved the cost of the funds in a coordinated action last week with five other central banks including the U.S. Federal Reserve.
The Frankfurt-based ECB will lend $50.7 billion to 34 euro-area banks tomorrow for 84 days at a fixed rate of 0.59 percent. That compares with the $395 million lent in the last three-month offering on Nov. 9 at a rate of 1.09 percent. The ECB also lent five banks $1.6 billion in its regular weekly dollar operation, up from $352 million last week. The ECB doesn’t disclose the identity of the banks it lends to.