The European Central Bank announced on Thursday that it has taken steps to mitigate the impact of possible rating downgrades on collateral availability.
"The ECB to grandfather until September 2021 eligibility of marketable assets used as collateral in the Eurosystem credit operations falling below current minimum credit quality requirements."
"The ECB may decide further measures, if needed, to continue ensuring the smooth transmission of its monetary policy in all jurisdictions of the euro area."
"The ECB says appropriate haircuts will apply for assets that fall below the Eurosystem minimum credit quality requirements."
The EUR/USD pair largely ignored this announcement and was last seen trading at 1.0818, down 0.33% on the day.
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