In a new article for the Wall Street Journal, the European Central Bank said that the euro has gained a “fractional reserve” of 2.8% of its total reserves, a significant move that signals the possibility that the currency will rise in value.
The ECB also indicated that its monetary policy has become more flexible.
The central bank said that its asset purchase program will increase the quantity of money available in the bank’s coffers by up to 10% per month and increase the monetary base to 10 billion euros ($11.6 billion).
The bank will be able to tap its “liquidity buffers” in the event of a financial crisis and that the central bank is willing to consider further purchases if needed.
The European Central Banks main interest rate is 0.25% and it was at 0.1% during the first quarter of the year.
It fell below zero at the end of last year and is currently at -0.1%.
The central banks main interest rates were also cut in April and May of last decade.