Banque centrale du Luxembourg became participant of TARGET2 on 19 November 2007, date of the migration of TARGET to the Single Shared Platform. It operates TARGET2-LU, the Luxembourgish component of TARGET2, which replaced LIPS-Gross1.
In TARGET2, only payment orders in euro are accepted. They are either national or cross-border, customer or interbank payments. Their settlement is executed:
- one by one (for the gross amount, i.e. the amount mentioned in the payment order);
- in real time and continuously;
- in central bank money (that is to say recorded on the books of the central bank).
Payments settled in this way are irrevocable and unconditional: they are considered as final. The settlement finality is important because it contributes to one of the Central bank’s objectives: the maintenance of the financial stability.
For more information, please refer to:
1LIPS-Gross (Luxembourg Interbank Payment System – Gross Settlement) is the real-time gross settlement (RTGS) system which was operated in Luxembourg from 1999 to 2007 and was a component of TARGET.
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