Spain Lends Out €60 Billion Cash Pile in Bid for Higher Returns.

Spain has begun lending out its cash reserves of over €60 billion in order to increase returns. The country's Treasury is offering funds currently held with the local central bank in exchange for government securities as collateral. By lending out the cash, Spain aims to generate a higher return than the European Central Bank's overnight rate. This move takes advantage of increased demand for cash in European money markets, which has been driven by a surplus of high-quality bonds in the market. Spain's cash holdings are almost double those of Germany, making it an attractive option for lending. [Extracted from the article]