Wednesday, November 30, 2011

The Fed And Other Central Banks Supply Dollars To ECB

The US Fed and other central banks joined together in an effort to provide dollars to the ECB. European banks are facing a liquidity crunch because they depend upon the wholesale market to borrow dollars from money market funds and from other banks. Those markets have tightened because of concerns about the health of many banks in Europe. The ECB is now able to fulfill that role.

The announcement of the assistance form the Fed and other central banks simulated the stock market in Europe and elsewhere.

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