“Covid-19 is a crisis like no other. Official institutions – including central banks – will be vital in shaping the world’s recovery moving forward.”
According to a recent publication by BNP Paribas Securities Services, central banks and supranational organisations are playing a vital role in counteracting the adverse effects of the 2020 Coronavirus outbreak on the financial markets and the international economy. These include:
- A massive monetary policy response – comprising, in the case of the European Central Bank, significant liquidity injections, an easing of bank capital and collateral requirements, and a Pandemic Emergency Purchase Programme
- A move to prioritising corporate quantitative easing (QE) purchases on environmental, social and governance- (ESG) related securities (including social bonds)
- Direct intervention in the repo market, ensuring continued liquidity in the credit markets
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