The central banks made the initial arrangement in 2020 to prevent the possible emergence of euro liquidity needs in the presence of market dysfunctions due to the ongoing COVID-19 pandemic.
Under a repo line, the ECB provides euro liquidity to a foreign central bank in exchange for adequate collateral.
It was initially agreed that the repo line would remain in place until 31 December 2020. The financial arrangement was first extended until end-June 2021 and now until March 2022.