(RTTNews) - Thursday, the European Central Bank said it is reinforcing its joint effort with the U. S. Federal Reserve by adding an overnight maturity to its operations to supply US dollar funding to Eurosystem counterparties. Additionally, the central bank also increased the funds offered in the Term Auction Facility operations.

The ECB said the US dollar liquidity-providing operations with its counterparties against Eurosystem-eligible collateral would be conducted under a variabale rate tender procedure. This is meant to continue the provision of US dollar liquidity for as long as needed in view of the prevailing market conditions. The Fed will provide up to US$40 billion under a temporary reciprocal currency arrangement or swap line.

For the Term Auction Facility operations, the ECB increased the amount of US dollar liquidity provided to the counterparties of the Eurosystem to US$25 billion for the 28-days maturity operations, and to US$15 billion for the 84-days maturity operations.

Overall, the dollar funding operations conducted by the Eurosystem could reach an outstanding amount of US$110 billion, compared to the current US$50 billion, the ECB said.

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