ECB Expands Currency Safety Nets in Bid to Boost Euro's Global Role

The European Central Bank (ECB) is planning to expand its currency safety nets to boost the global role of the euro. ECB President Christine Lagarde said on Monday that the bank would work on swap lines, which allow foreign central banks to borrow euros in exchange for their own currency.

This move comes amid concerns over financial fragmentation and uncertainty around the future of the US dollar under President Donald Trump. The push is part of an ongoing ECB effort to expand the euro's international footprint.

Lagarde said that the ECB would work on swap lines that 'will be more responsive to the imperative of having a sovereign euro area and a strong euro.'

The ECB has received nearly 30 applications for a separate lending facility, known as repurchase agreements or repo, which allows foreign banks to borrow against euro collateral. Central bank officials and investors worry that the US Federal Reserve might eventually cut its own swap lines.