ECB released its weekly statement for the week ending on 10 August. Some small positive signs since last week seem to continue.

Asset Side

On the asset side, the weekly USD liquidity-providing operation remained roughly steady at $7.1bn. Lending to credit institutions increased by €1.3bn. ‘Other Claims’ (ELA) decreased a bit more this week as well by €1.35bn.

Liabilities Side

Banknotes dropped €0.9bn while bank reserves increased by €12.6bn. General government accounts decreased by €0.8bn while ‘Other liabilities’ (in the same category with government deposits) dropped 0.5bn this week. ‘Liabilities to non euro area residents’ were lower again, this week dropping by 9.4bn. Still, current SNB data do not seem to suggest that Euros are returning back home so i ‘m wondering if the drop in this entry is due to SNB investing its reserve holdings (most probably in government bonds). We ‘ll have to wait and see.


This week’s MRO was somewhat lower than week’s, registering at €130.6bn compared with €133.4bn, most definitely a positive development.