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Europe Weekly

Shrinking Eurozone Liquidity; Russia's Banking Worries; Icesave Implications

Eurozone: Money Market Update

By Elisa Parisi-Capone

The latest monthly data for April shows that the excess liquidity in the Eurosystem has continued to shrink, now reaching €24.1 billion (Figure 1). The gap between the effective overnight interbank rate EONIA and the ECB’s main policy rate has accordingly narrowed, as measured in monthly averages, although, at shorter frequencies, volatility remains more elevated.

Some of the[...]

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