The Bank of Japan (BOJ) said yesterday it will provide dollar funds for 40
Japanese and foreign financial institutions through auction as part of six major
central banks' coordinated action to regulate the market in short-term finance
between banks and other financial institutions.
The BOJ, which plans five auctions by the end of November, will hold the
first one on Wednesday to lend up to US$30 billion for one month to the 40
financial institutions selected by the BOJ. Among them are the Bank of
Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp., Mizuho Bank, Goldman Sachs
(Japan) Ltd. and Credit Suisse Securities (Japan) Ltd.
Meanwhile, in order to ease pressures on money market, the BOJ pumped
emergency fund into money market for a fifth straight working day Monday,
bringing the aggregate amount to 12.5 trillion yen (US$117.92 billion).
On Thursday six central banks such as the BOJ, the US Federal Reserve and the
European Central Bank decided to take coordinated measures to mitigate the
negative effect exerted by the current turmoil in the global financial market.
As part of the measures, the BOJ had a currency swap deal worth 60 billion
dollars (US$571.43 million) ith the Fed to provide dollar funds to Japan's
worst-hit financial institutions.
