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It's dollars unlimited to boost liquidity
13 Oct 2008Unlimited amounts of dollars will be available to the commercial bank lending market as the US Federal Reserve continues to stand behind attempts to kick-start liquidity in the money markets.
In the latest co-ordinated move by the world's leading central banks, the Fed money will be available through the Bank of England, the European Central Bank, the Bank of Japan and Swiss National Bank.
"Counterparties in these operations will be able to borrow any amount they wish against the appropriate collateral in each jurisdiction," said the Fed.
"Central banks will continue to work together and are prepared to take whatever measures are necessary to provide sufficient liquidity in short-term funding markets."
Sterling today rose on the Super Monday banking bailout, up more than one-and-a-half cents against the dollar, which was also nearly two cents weaker against the euro.
