Sources: European Central Bank will open up liquidity channels to more countries to promote the euro's status.

Three sources revealed that the European Central Bank is working to expand the scope of its liquidity facilities to more countries in order to lower the costs of the facility and make it more convenient to use, with the aim of enhancing the international status of the euro. The details of this move are still being discussed, and it is expected to be announced during the Munich Security Conference next week. Sources stated that this action will provide a unified set of access rules for entering into repurchase agreements with the European Central Bank. These facilities allow foreign central banks to borrow euros by using euro-denominated collateral. They are specifically designed for times of crisis when commercial banks outside the euro area have difficulty accessing single-currency liquidity. However, the European Central Bank will retain the right to reject a central bank based on reputation, with the Governing Council of policymakers having the final say on any transactions.