18 Dec 2010

ECB to double its cash reserves

10:00 am on 18 December 2010

The European Central Bank is to almost double the size of its cash reserves, giving it more funds to tackle eurozone financial problems.

The ECB is to increase the reserves it holds to 10.8 billion euros ($US14.3 billion) from 5.8 billion euros at present.

The bank is requesting the cash from the 16 national central banks in the eurozone. The BBC reports it is the first time the ECB has asked them for such a cash injection.

The EU has recently bought eurozone government bonds worth billions of euros from some of the most indebted countries in the eurozone, such as Greece, Portugal and the Republic of Ireland.