From ‘who is it?’ to ‘who are they?’ and ‘how much?‘
After a period of sending a piffling $60m a week to one European bank at its regular dollar tenders, the European Central Bank has now provided $560m to two institutions:
Europe’s mystery dollar-snaffler has a friend.
And assuming the original dollar-snaffler is still popping round for its usual $60m, leaving $500m — this friend wants a lot of dollars.
For our money this might be because the rate on the ECB dollar swap is looking a bit less expensive compared to the market, now that European rates are pricing in the start of the central bank’s exit strategy.
But until we have the banks’ identity, who knows?
Related link:
The $60m question – FT Alphaville