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The new publication regime aims to reinforce the distinction between exchange rate fixings used as benchmarks for transaction purposes and the European Central Bank (ECB) reference rates that are published for information purposes only.
The ECB will monitor foreign exchange market developments closely and expects transaction activity related to the ECB reference rates to decline substantially. If it does not, the ECB will consider further delaying the publication of the reference rates, potentially until the next business day.
The changes to the ECB reference rates take into account the recommendations of the Financial Stability Board on foreign exchange benchmarks, as well as the principles for benchmark-setting processes in the EU drawn up by the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) and the principles for financial benchmarks drawn up globally by the International Organisation of Securities Commissions (IOSCO).
“Given that the ECB reference rates are provided as a public good for individual citizens and institutions, it is essential to safeguard a high level of integrity and to underline that they are intended to be used solely as a reference for information rather than when making transactions,” said ECB Executive Board member Benoît Cœuré.