Bank floods markets with cash
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.