World

Central Banks Offer Extra Funds to Calm Money Markets

by Dave Keating | September 18, 2008 at 03:36 am

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As government finance ministries across the world scramble to restore confidence in the global financial system amid the banking collapse this week, the Federal Reserve announced this morning it will almost quadruple the amount of money central banks can auction around the world. It is hoped that this extra infusion of government money (coming from taxpayers of course) will reassure jittery investors that they will not be ruined by an upcoming crash.

The Federal Reserve almost quadrupled the amount of dollars central banks can auction around the world to $247 billion in a coordinated bid to ease the worst crisis facing financial markets since the 1920s.

The Fed increased the amount of dollars that the European Central Bank, the Bank of Japan and other counterparts can offer from $67 billion ``to address the continued elevated pressures in U.S. dollar short-term funding markets.'' The Bank of England, the Bank of Canada and the Swiss National Bank also participated.