Federal Reserve pumps more into Central Banks

To ease the pressure on money markets the US federal Reserve is making available to central banks in Denmark, Norway, Sweden and Australia $30 billion (£16.1 billion) The $30 billion will be split between the four countries with Sweden and Australia having access to $10 billion and Norway and Denmark having $5 billion each.

The Federal Reserve has already made a similar commitment to central banks in the UK, Japan, Canada and the European Central Bank for $180 billion. The reason behind it is to “improve liquidity” whilst credit is limited.

The commercial banks can access the $30 billion as a loan to improve short-term funding requirements. The US government also said they will take further steps if needed.

Source: BBC