The European Central Bank said today that it would allot more funds than strictly necessary at its weekly tender.
But the ECB added it would "gradually reduce the large reserve surplus which has accumulated in the first weeks of the reserve maintenance period.
"The allotment amount in this main refinancing operation will exceed the published benchmark of €227 billion by an amount which is consistent with this aim."
The ECB's main weekly tender for seven-day refinancing takes place tomorrow, with bids due from banks earlier.
Money market traders had noted excess liquidity at the very short end of the euro money market after the ECB lent more than €70 billion above its benchmark last week to ensure adequate liquidity as commercial banks avoided lending to each other.
This money is due to be repaid on Wednesday. Until early last week, the ECB was adding extra funds to money markets on a daily basis to make sure fears of a credit crunch stemming from problems in the US subprime mortgage sector did not bring trading to a halt, but it has now stopped doing so.