Bank floods mar­kets with cash

Townsville Bulletin - - World Snapshot -

JA­PAN’S cen­tral bank con­tin­ued to flood money mar­kets with cash yes­ter­day, bring­ing its to­tal emer­gency fund­ing to nearly $ US700 bil­lion ($ 708.47 bil­lion).

The move was to try and soothe fears about the eco­nomic im­pact of the cat­a­strophic earth­quake, tsunami and un­fold­ing nu­clear cri­sis.

The lat­est of­fer of Bank of Ja­pan fund­ing came as stock mar­kets bounced back from a steep sell-off that sent the bench­mark Nikkei down 20 per cent over two days to an al­most two-year low. The in­dex fin­ished up 5.7 per cent at 9093.72.

The Bank of Ja­pan con­ducted emer­gency op­er­a­tions for the third day in a row, bring­ing its to­tal liq­uid­ity in­jec­tion to Y55.6 tril­lion ($ 695.91 bil­lion) since Mon­day.

By flood­ing the bank­ing sys­tem with money, it hopes banks will con­tinue lend­ing and meet the likely surge in de­mand for post­dis­as­ter funds.

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