US dollar liquidity-providing operations
In response to continued strains in short-term funding markets, central banks recently announced coordinated actions to expand the provision of US dollar liquidity.
Today, the central banks are announcing schedules for term and forward auctions of US dollar liquidity during the fourth quarter of this year. These schedules include dates of any 28-day and 84-day term auctions and two preliminary dates for any forward auctions of US dollar liquidity over year-end. Scheduling of the forward auctions is still tentative and may be adjusted in response to financial market conditions.
The Eurosystem intends to apply the following schedules.
Schedule for 28- and 84-day Term Auctions of US Dollar LiquidityFourth Quarter 2008
| Auction Date | Term | Settlement Date | Maturity Date |
|---|---|---|---|
| 6 October 2008 | 85 days(1) | 9 October 2008 | 2 January 2009 |
| 20 October 2008 | 28 days | 23 October 2008 | 20 November 2008 |
| 3 November 2008 | 84 days | 6 November 2008 | 29 January 2009 |
| 17 November 2008 | 28 days | 20 November 2008 | 18 December 2008 |
| 1 December 2008 | 84 days | 4 December 2008 | 26 February 2009 |
| 15 December 2008 | 28 days | 18 December 2008 | 15 January 2009 |
| 29 December 2008 | 83 days(1) | 2 January 2009 | 26 March 2009 |
(1) Term modified because of holiday.
Preliminary Schedule for Forward Auctions of US Dollar Liquidity
| Auction Date | Term | Settlement Date | Maturity Date |
|---|---|---|---|
| 10 November 2008 | 17 days | 22 December 2008 | 8 January 2009 |
| 24 November 2008 | 13 days | 23 December 2008 | 5 January 2009 |
While retaining flexibility to react to changing market conditions, the Eurosystem intends to offer between USD 40 and 50 billion in overnight operations, USD 40 billion in 28-day operations, USD 20 billion in each one of the 84-day operations and USD 20 billion in each one of the forward US dollar operations.
The amounts offered in each operation may change, and other operations may be conducted, if deemed necessary in view of market developments.
Moreover, as from Wednesday, 8 October 2008, the Eurosystem will apply a multiple rate auction method (American auction) in its overnight US dollar operations. Therefore the auction method will be the same for the overnight US dollar operations and for the Eurosystem’s euro credit operations.
A tentative calendar of future Eurosystem US dollar liquidity-providing operations is available on the ECB’s web site (http://www.ecb.europa.eu/mopo/implement/omo/pdf/cal_sup_ops.pdf, page 2). It will be updated in the future as needed.
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