The Central Bank of Iceland has completed onboarding to the Eurosystem Repo Facility for Central Banks, known as EUREP, giving it an additional source of temporary euro liquidity and strengthening its foreign exchange reserve management.

The Central Bank of Iceland gains access to the EUREP facility by pledging eligible euro-denominated securities as collateral to borrow euros. The arrangement is intended to bolster the bank’s financial crisis preparedness by enabling rapid and flexible liquidity provision with minimal counterparty risk.

The European Central Bank established EUREP as a standing facility open to central banks outside the euro area. Its purpose is to reduce the risk of euro funding pressures abroad by providing timely backstop funding to foreign central banks and supporting the smooth functioning of financial markets.

The maximum borrowable amount for non-euro area central banks under the facility is 50 billion euros, with actual availability depending on the volume and value of eligible collateral a central bank can pledge.

The agreement also deepens the institutional relationship between the Central Bank of Iceland and the Eurosystem more broadly.

Source: Central Bank of Iceland. Read the original (published 2026-11-10).