ECB injects another 48 bln euros to stabilize market 2007-08-13 20:22:49   Print

    BERLIN, Aug. 13 (Xinhua) -- The European Central Bank (ECB) injected on Monday a further 47.665 billion euros (65.06 billion U.S. dollars) into the banking system after pumping it with huge funds last week.

    The injection, at rates of 4.06 percent or above, was aimed at addressing liquidity shortages amid growing fears about the U.S. mortgage sector.

    The Frankfurt-based bank said earlier that the eurozone banking market was returning to normal after it injected a record 155.85 billion euros (212.74 billion dollars) into the market over two days on Aug. 9 and 10.

    "The ECB notes that money market conditions are normalizing and that the supply of aggregate liquidity is ample," said the ECB.

    "With this fine-tuning operation, the ECB is further supporting the normalization of conditions in the money market," it said.

    The injections will enable commercial banks to borrow from the central bank to ease their liquidity shortage problem.

Editor: Jiang Yuxia
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