Currency Newswire » European Central Bank

ECB’s Trichet is Bond Buyer of Only Resort

admin — Fri, 12 Nov 2010 04:32:36 +0000

European Central Bank President Jean-Claude Trichet is the buyer of only resort as the euro area’s bond market melts down.

Just six months after he threw out his rule book to prevent Greece’s debt crisis from splintering the euro area, the 67-year old Frenchman may again be the only policy maker able to prevent the collapse in Irish and Portuguese bonds from spreading. That may require him to ignore opposition from Bundesbank President Axel Weber to the ECB’s bond-buying program and expand purchases of sovereign assets, according to Citigroup Inc. and Royal Bank of Scotland Group Plc.

The pressure on the Frankfurt-based ECB reflects its status as the only institution in the 27-nation European Union able to act fast enough to placate bondholders. The premium investors charge to hold Irish and Portuguese debt over German bunds reached records yesterday and the euro fell almost 2 cents to $1.3637.

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ECB Buys Irish Bonds as Spread Over Bunds Widens to Record

admin — Tue, 02 Nov 2010 16:57:15 +0000

The European Central Bank bought Irish government bonds today, according to three traders with knowledge of the transactions.

The ECB purchased debt maturing in 2019 and 2025, one of the traders said under condition of anonymity because the deals are confidential. A central bank spokesman declined to comment when contacted by telephone in Frankfurt.

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European Central Bank Purchased Irish Government Bonds Today

admin — Fri, 29 Oct 2010 04:47:47 +0000

The European Central Bank bought Irish government bonds today, according to three traders and strategists with knowledge of the transactions.

The ECB purchased debt maturing between 2011 and 2020, one of the traders said, under condition of anonymity because the deals are confidential. A central bank spokesman declined to comment when contacted by telephone in Frankfurt.

ECB council member Axel Weber, who is also president of Germany’s Bundesbank, said on Oct. 12 that the ECB’s “securities purchases should now be phased out permanently.”

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ECB Refrains From Purchasing Bonds for a Second Week

admin — Tue, 26 Oct 2010 05:47:10 +0000

The European Central Bank refrained from buying government bonds for a second week.

The Frankfurt-based central bank said no transactions in its Securities Markets program were settled in the week ending Oct. 22. The bank will take 7-day term deposits tomorrow to neutralize 63.5 billion euros ($89.1 billion) of liquidity created by bond purchases since the program started on May 10.

Bundesbank President Axel Weber said on Oct. 13 that the ECB should terminate the program, which was introduced to help restore order to financial markets rattled by Greece’s fiscal crisis.

German Central Banker Urges ECB to Phase Out Stimulus

admin — Thu, 14 Oct 2010 17:31:39 +0000

German central bank chief Axel Weber urged fellow European Central Bank policymakers on Tuesday to mull ending exceptional support measures, which would put the ECB at odds with other central banks.

“It is necessary, from a monetary policy point of view, not to postpone the exit from non-standard measures for too long,” Weber said in a speech delivered in New York but also distributed by the Bundesbank in Frankfurt.

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European Central Bank Keeps Interest Rate at 1 Percent

admin — Mon, 06 Jul 2009 00:41:17 +0000

The European Central Bank left its benchmark interest rate unchanged at 1 percent as it waits to see whether a massive infusion of credit into the banking system will help the euro zone’s struggling economy.

Markets and analysts will be looking to Thursday’s remarks by bank President Jean-Claude Trichet about the ECB’s $623 billion in 12-month loans offered to banks last week, its biggest ever, and what it augurs for the 16-nation euro zone in a bid to try to keep cash flowing to, from and between banks. Read more…

Gold Jumps as ECB Front-Runs the Fed, Lends Near-Half Trillion Euros at 1.0%

admin — Wed, 24 Jun 2009 14:42:22 +0000

THE PRICE OF GOLD leapt overnight and early Wednesday, recovering all and more of this week’s losses at $938 an ounce as world stock markets ticked higher but crude oil slipped for the second day running.

US Treasury bond prices also drifted as the US Dollar Index held flat ahead of today’s interest-rate announcement from the Federal Reserve, widely expected to reaffirm its commitment to Quantitative Easing and 0% interest rates.

The world’s No.1 reserve currency rose however against its main competitor, the Euro, after the European Central Bank pumped a record €442 billion ($618bn) into the region’s banks, offering unlimited loans for 12 months at the current policy rate of just 1%.
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ECB Governor Warns Bulgaria Against Speedy Euro Adoption

admin — Sun, 14 Jun 2009 20:26:10 +0000

The European Central Bank (ECB) governor Jean-Claude Trichet, who is on a visit in Sofia, has taken a stance against the immediate introduction of the euro, saying it is crucial that requirements are met first.

Trichet, who paid a visit to Bulgaria on the occasion of the 130th anniversary since the establishment of the country’s Central Bank, commented in the wake of recent International Monetary Fund calls on central and eastern European countries to consider scrapping their currencies in favour of the euro even without formally joining the eurozone. Read more about the euro…

ECB Fears Banking Crisis in 2010: Report

admin — Thu, 11 Jun 2009 16:24:56 +0000

The European Central Bank fears another banking crisis in 2010 if the recession drags on, said ECB financial stability expert Dejan Krusec on Wednesday, cited on the website of the Daily Telegraph.

If there is a quick ‘V-shaped’ recovery the banks would be strong enough to weather the downturn, he said. Read more about the ECB…

ECB-Gold Reserves Down by 18 Mln Euros in Week

admin — Wed, 10 Jun 2009 05:55:37 +0000

Gold and gold receivables held by euro zone central banks fell by 18 million euros to 240.766 billion euros ($333.9 billion) in the week ending June 5, the European Central Bank said on Tuesday. Read more about the European Central Bank…