The Bank of England announced activation of CTRF
|The Bank of England on Tuesday announced the activation of an emergency liquidity measure in a Contingent Term Repo Facility, or, a CTRF, as it tries to smooth the functioning of money markets during the coronavirus crisis.
Key notes
- The BoE will hold CTRF operations on March 26 and April 2, with no limit on the amount of funds it can lend out.
- The CTRF is intended to be a more flexible form of liquidity measure than the BoE's regular repo operations that can be tailored to the needs of financial markets at a particular moment.
FX implications
The measures taken by banks can instil some temporary relief to markets, although until the cases of COVID-19 numbers decline on a worldwide scale, with no signs of reinfection, mutation and spread, uncertainty will weigh on the pound due to an economy on the brink of a depression and a long-long road to recovery.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.