ECB offers more dollars to European banks
European Central Bank offered more overnight cash to European banks on Wednesday in its ongoing effort to shore up shaky global markets.
By Agencies |
FRANKFURT: The European Central Bank offered more overnight cash to European banks Wednesday in its ongoing effort to shore up shaky global markets and keep liquidity flowing between banks reluctant to lend to one another.
The Frankfurt-based ECB, the central bank for the 15 countries that use the euro, offered up US$40 bn on Wednesday.
Earlier in the day, the US plowed US$30 bn into money markets overseas, part of an ongoing effort to fight a global credit crisis.
The Fed's action - taken at 1 am in the US (0500 GMT) - set up temporary "swap" arrangements to supply dollars to the central banks of Australia, Denmark, Norway and Sweden in exchange for their currencies.
The new swap arrangements will provide up to US$10 bn each to the central banks of Australia and Sweden and US$5 bn apiece to the central banks of Denmark and Norway.
On Tuesday, the ECB and the Bank of England offered up a combined US$80 bn. In Zurich, the Swiss National Bank has also provided overnight dollar liquidity to markets.
The moves follow a series of concerted actions last week with central banks in Canada, the US and Japan to supply cash to banks that had become leery of lending to one another in the aftermath of the bailout of major insurer American International Group and the bankruptcy of US investment bank Lehman Brothers.
The Frankfurt-based ECB, the central bank for the 15 countries that use the euro, offered up US$40 bn on Wednesday.
Earlier in the day, the US plowed US$30 bn into money markets overseas, part of an ongoing effort to fight a global credit crisis.
The Fed's action - taken at 1 am in the US (0500 GMT) - set up temporary "swap" arrangements to supply dollars to the central banks of Australia, Denmark, Norway and Sweden in exchange for their currencies.
The new swap arrangements will provide up to US$10 bn each to the central banks of Australia and Sweden and US$5 bn apiece to the central banks of Denmark and Norway.
On Tuesday, the ECB and the Bank of England offered up a combined US$80 bn. In Zurich, the Swiss National Bank has also provided overnight dollar liquidity to markets.
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The moves follow a series of concerted actions last week with central banks in Canada, the US and Japan to supply cash to banks that had become leery of lending to one another in the aftermath of the bailout of major insurer American International Group and the bankruptcy of US investment bank Lehman Brothers.
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