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(CEP News) - As the world's major central bank embarked on massive U.S. dollar liquidity injections, the Reserve Bank of Australia has made no indication that it will follow the initiative.
Earlier on Thursday, the European Central Bank, the Bank of England, the Federal Reserve, the Bank of Japan, Bank of Canada and the Swiss National Bank announced co-ordinated actions to be taken to ease elevated tension in the short-term U.S. money markets. "These measures, together with other actions taken in the last few days by individual central banks, are designed to improve the liquidity conditions in global financial markets," an ECB said in a release. "The central banks continue to work together closely and will take appropriate steps to address the ongoing pressures." The press release also noted that the ECB, along the Federal Reserve, will inject $25 billion through 28-day maturity operations and $15 billion through 84-day maturity operations. The Bank of Japan announced that it had reached an agreement with the Federal Reserve to supply up to $60 billion to investors in Japan, according to a statement published on the central bank's website on Thursday. The Bank of England has also entered into a U.S. dollar swap agreement with the Fed and has announced that it will lend out U.S. dollar funds in the form of an auction, in exchange for eligible collateral. The Swiss National Bank will hold U.S. dollar repo auctions totalling $10 billion. The currency arrangement between the Fed and the Bank of Canada totals $10 billion and would be used if needed to increase U.S. dollar liquidity in Canada. By Erik Kevin Franco,
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and Todd wailoo,
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, edited by Stephen Huebl,
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