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Banks start to charge customers for deposits in euro - Investec

FXStreet (Łódź) - Jonathan Pryor, Corporate Treasury Analyst at Investec observes that following ECB's introduction of negative deposit rates some large global banks have begun to charge their clients for holding cash in euros.

Key Quotes

"This is the first glimpse of the trickledown effect of the ECB's recent move to negative deposit rates (negative deposit rates mean banks are paying to park their money with the ECB)."

"The policy is designed to encourage banks to instead lend that money out to benefit the economy."

"After an initial move to negative deposit rates earlier this year, the ECB lowered the rate further in September, leading to some banks now pushing those costs onto customers."

"This could be the catalyst for the next move lower in the Euro, as wealthy individuals and larger corporations may choose to heavily reduce Euro holdings to avoid the costs."

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