The U.S. Federal Reserve and other central banks on Tuesday jointedly announced that they will pump more liquidity into the global financial system to ease the credit crunch.
The Federal Reserve said it will lend up to 200 billion U.S. dollars of Treasury securities to cash-strapped financial institutions with a term of 28 days instead of overnight under an existing program.
"Since the coordinated actions taken in December 2007, the G-10central banks have continued to work together closely and to consult regularly on liquidity pressures in funding markets," said the Fed in a statement.
"Pressures in some of these markets have recently increased again," the Fed noted, "We all continue to work together and will take appropriate steps to address those liquidity pressures."
The other banks involved are the Bank of Canada, the Bank of England, the European Central Bank and the Swiss National Bank.
Each of the central banks "are announcing specific measures" to ease the credit crunch, according to the Federal Reserve.
Source: Xinhua
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