TOKYO —

Central banks around the world said Monday they will double the amount of dollar funds injected into markets as the U.S. financial crisis has spread into Europe. Ten central banks, including the Bank of Japan, the U.S. Federal Reserve and the European Central Bank, will provide a total of $620 billion to their respective markets.
   
The latest figure was $330 billion yen larger than the previously set $290 billion, including $180 billion injections announced Sept 18 by six central banks—those in Britain, Switzerland and Canada in addition to the BOJ, the Fed and the ECB. Four other central banks in Denmark, Norway, Australia and Sweden have joined to pump more dollar funds into the market.
   
The Bank of Japan, which has entered into a $60 billion money swap deal with the Federal Reserve Bank of New York, said it will boost the size of the deal to $120 billion. At a press conference held late Monday after the announcement of the expansion of concerted actions for dollar injections, Bank of Japan Governor Masaaki Shirakawa said dollar liquidity on global financial markets ‘‘has almost dried up.’‘
   
He said he hopes the expansion of dollar-injection operations by the central banks will ‘‘help stabilize the financial market.’‘
   
The central banks moved to pump more dollar funds into markets as the financial crisis triggered by the U.S. subprime mortgage debacle is deepening.
   
Hit by swelling bad assets, a number of major U.S. financial institutions, including investment bank Lehman Brothers Holdings Inc and savings and loan firm Washington Mutual Inc, have collapsed.

The financial crisis has spread in Europe, with governments forced to nationalize troubled banks and bail out financial institutions.

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4 Comments

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  some14some at 08:01 AM JST - 30th September

  Pumping financial markets will serve better purpose than refueling mission in Indian Ocean. BOJ has already injected Y15trillion as of last week, still plenty of room for upto Y20-Y30 trillions (my guess).

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  OssanULTRA at 08:23 AM JST - 30th September

  Refueling costs are already starting to go down. Japan will play this gamne along with the EU. And what is China going to do to proect her economic growth?

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  memyselfI at 09:30 AM JST - 30th September

  He said he hopes the expansion of dollar-injection operations by the central banks will ‘‘help stabilize the financial market.’’ I hope so too !!! But you have to thank the genius architects who created the subprime mortgage. They'll go down in the history books for creating this financial chaos.

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  jbro888 at 12:48 PM JST - 30th September

  yes, well just print more imagination money thats not backed by anything, thatll fix the problem

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