BoJ injects cash for second trading day
Tuesday, 11 May 2010
TOKYO, May 10 (AFP): The Bank of Japan (BoJ) Monday offered two trillion yen (21.6 billion dollars) in liquidity to financial institutions for a second trading day in a row to calm markets rattled by Greece's debt woes.
The central bank offered to provide the cash in same-day operations to banks and brokerages against their collateral pooled at the BoJ.
The two trillion yen cash injection -- the bank's second since Friday -- aims to support Japanese stocks by curbing the yen's rise and making available ample funds for financial markets.
Tokyo stocks rebounded Monday on relief over a deal to help the crisis-hit eurozone with a huge aid package from Europe and the International Monetary Fund, and as the yen eased against the dollar and euro.
The Nikkei stock index ended up 1.60 per cent Monday.
The single currency shot higher to 1.3037 dollars in London morning trade, up from 1.2755 dollars in New York Friday. It also bought 121.80 yen, sharply up from 116.80 yen in New York.
Finance Minister Naoto Kan said he expected the "major response" by Europe and the IMF and a pledge of support from the Group of Seven (G7) industrialised nations to help stabilise global financial and currency markets.
"With the G7 now fully backing these efforts, I expect and hope that will help stabilise global stock markets, the euro and other currencies," he said.
Kan said Japan was not thinking of taking any unilateral steps over Europe's debt problems, but that it was contributing to global support through the IMF.
The BoJ Monday also joined the central banks of Europe, the United States, Britain, Canada and Switzerland to support financial markets by preventing dollar shortages during the Greek debt crisis.
The BoJ joined the other banks in re-establishing so-called dollar liquidity swap facilities with the US Federal Reserve, revitalising emergency measures that were applied when the global financial crisis erupted in 2008.
The central bank offered to provide the cash in same-day operations to banks and brokerages against their collateral pooled at the BoJ.
The two trillion yen cash injection -- the bank's second since Friday -- aims to support Japanese stocks by curbing the yen's rise and making available ample funds for financial markets.
Tokyo stocks rebounded Monday on relief over a deal to help the crisis-hit eurozone with a huge aid package from Europe and the International Monetary Fund, and as the yen eased against the dollar and euro.
The Nikkei stock index ended up 1.60 per cent Monday.
The single currency shot higher to 1.3037 dollars in London morning trade, up from 1.2755 dollars in New York Friday. It also bought 121.80 yen, sharply up from 116.80 yen in New York.
Finance Minister Naoto Kan said he expected the "major response" by Europe and the IMF and a pledge of support from the Group of Seven (G7) industrialised nations to help stabilise global financial and currency markets.
"With the G7 now fully backing these efforts, I expect and hope that will help stabilise global stock markets, the euro and other currencies," he said.
Kan said Japan was not thinking of taking any unilateral steps over Europe's debt problems, but that it was contributing to global support through the IMF.
The BoJ Monday also joined the central banks of Europe, the United States, Britain, Canada and Switzerland to support financial markets by preventing dollar shortages during the Greek debt crisis.
The BoJ joined the other banks in re-establishing so-called dollar liquidity swap facilities with the US Federal Reserve, revitalising emergency measures that were applied when the global financial crisis erupted in 2008.