Forex News and Information

212992 Resource 119232 120646 120646 1221749771490 1221749771490 Controlled Central Banks Move to Boost Global Liquidity

Forex reserves are being used to prop the currency market

One of the things that <a href="http://www.forexblog.org/2008/09/forex-reserves.html" target="_blank" title="forex reserves, currency market, U.S. financial markets, central banks, Bank of Japan, European Central Bank, Federal Reserve">forex reserves do is prop up the currency market</a>. And right now, many of the markets need that. Liquidity is low, the <a href="http://blog.gftuk.com/public/item/212927" target="_blank" title="forex reserves, currency market, U.S. financial markets, central banks, Bank of Japan, European Central Bank, Federal Reserve">Libor</a> continues to rise and the U.S. financial markets are in turmoil. As a result, the Federal Reserve has made allowances for <a href="http://www.actionforex.com/fundamental-analysis/daily-forex-fundamentals/a-step-into-the-market,-central-banks-add-liquidity-2008091860656/" target="_blank" title="forex reserves, currency market, U.S. financial markets, central banks, Bank of Japan, European Central Bank, Federal Reserve">central banks around the world to use close to $250 billion</a> to help keep financial institutions going. This means that central banks can give out loans in dollars. Indeed, this move means that for the first time in history the <a href="http://www.mortgagenewsdaily.com/09182008_boj_liquidity.asp" target="_blank" title="forex reserves, currency market, U.S. financial markets, central banks, Bank of Japan, European Central Bank, Federal Reserve">Bank of Japan</a> will be giving out loans denominated in the U.S. dollar in order to stabilize both the yen and the greenback. For Japan, that means a limit of $60 billion. Here are some of the allowances for other central banks around the world: <ul><li style="font-family: verdana,arial,helvetica,sans-serif;">European Central Bank: $110 billion.</li><li style="font-family: verdana,arial,helvetica,sans-serif;">Swiss national bank: $27 billion.</li><li style="font-family: verdana,arial,helvetica,sans-serif;">Bank of England: $40 billion.</li><li>Bank of Canada: $10 billion. </li></ul> 9 application/xml false Bank of Japan central banks currency market European Central Bank Federal Reserve forex news forex reserves U.S. financial markets Forex News and Information FX trading on the currency market http://www.gftforex.com/land/index.asp?aid=446 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.1) Gecko/2008070206 Firefox/3.0.1 127.0.0.1 127.0.0.1 mmarquit 66.182.71.19 false true false false true 119232 blog blogsite/GFTForex/web