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Dutch cash policy to stay unchanged after ECB govt deposits decision – fin min spokesperson


Dutch cash policy to stay unchanged after ECB govt deposits decision – fin min spokesperson By Reuters

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Economy 11 minutes ago (Sep 08, 2022 15:57)

© Reuters. FILE PHOTO: A symphony of light consisting of bars, lines and circles in blue and yellow, the colours of the European Union, illuminates the south facade of the European Central Bank (ECB) headquarters in Frankfurt, Germany, December 30, 2021. REUTERS/Wol

AMSTERDAM (Reuters) – The Dutch debt office will not change its cash management policy after the European Central Bank decided to remunerate government cash deposits means, a finance ministry spokesperson told Reuters on Thursday.

The ECB removed a 0% cap on the interest it pays on governments’ cash deposits until April 2023, it said on Thursday after it hiked rates. The move follows concerns that governments could run down the cash and escalate a shortage of bonds used as collateral in the bloc.

“We will work on a new strategy for the situation after this period,” spokesperson Lena van der Priem told Reuters.

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