Financial Stability
RBNZ boosts liquidity with bill buyback
The Reserve Bank of New Zealand said that it will accept New Zealand bank bills in its overnight reverse repurchase facility from 24 August.
Pressure moves to money market funds
In a classic example of how financial strains can have repercussions in areas of finance far away from the original epicentre of the crisis, asset management companies such as Vanguard Group and Fidelity Investments have been flooded with calls from…
The impact of contagion on interbank markets
The Bank for International Settlements has published a paper on using counterfactual simulations to assess the danger of contagion in interbank markets.
US Senator hints at cut after high level meeting
Christopher Dodd, a US senator, said Ben Bernanke, the chairman of the Federal Reserve, would use "all the available tools" to ensure markets remained liquid.
Action only if "real" impact - Fed's Lacker
Jeff Lacker, the president of the Richmond Federal Reserve, said on Tuesday that the Fed's reaction to the current bout of market volatility should depend on the effect it has on "real activity."
San Francisco Fed conference on Asian Crisis
The Federal Reserve of San Francisco will hold a conference and seminar series discussing the impact of the 1997 Asian financial crisis.
Bank of England joins the fray with emergency loan
In what represents its first unusual market intervention during the current spell of market volatility, the Bank of England lent £314 million ($622 million) today to an unnamed financial institution through its standing facility.
Swiss chairman criticises US subprime
Jean-Pierre Roth, the chairman of the Swiss National Bank described the US subprime crisis as "unbelievable" and said that reality was "striking back"
Australia investigates resilience
The Reserve Bank of Australia has published a series of draft papers presented at its conference on the structure and resilience of the financial system, which took place on 20 and 21 August.
ECB publishes "Blue Book"
The 2007 edition of the Blue Book, which describes the main payment and securities settlement systems in the EU, comes in two volumes: one on countries in the euro area, the other for non-euro area countries.
Nigeria's strategy for the new naira
Charles Soludo, the governor of the Central bank of Nigeria, sets out plans for the currency redenomination.
Market optimism fades after Fed action
After the rally in US equity market of Friday continued in Asian and European markets after the weekend, Wall Street indexes were firmly back in the red by mid-day on Monday.
Japan injects 1.2 trillion as Nikkei falls 5.4%
The Bank of Japan lent 1.2 trillion ($10.5 billion) to the markets Friday after draining 2 trillion Wednesday. The central bank's injection was made as market concerns over liquidity took the overnight lending rate above the central bank's 0.5% target.
Canada extends collateral list to aid market
In a move to shore up liquidity, the Bank of Canada said Wednesday that it will expand the list of collateral eligible for use in special purchase and resale agreements.
RBNZ comments on liquidity provisions
Grant Spencer, the acting governor of the Reserve Bank of New Zealand, says the central bank would act if market conditions worsened, saying that the bank "stands ready to provide additional liquidity" if required.
Japan drains 2 trillion to stabilise rates
The Bank of Japan absorbed 2 trillion ($16.8 billion) from the markets on Wednesday 15 August after the overnight call rate dropped below the central bank's target rate.
Nigeria announces plans for new naira
Charles Soludo, the governor of the Central Bank of Nigeria, said Tuesday that the central bank is to drop two zeros from the Naira and introduce a new set of notes and coins.
Recent events indicate Argentine stability
Martin Redrado, the governor of the Central Bank of Argentina, said that recent market volatility showed the strength of the country's monetary and financial policy.
Trichet claims markets close to normal
Jean-Claude Trichet, the president of the European Central Bank (ECB), said that the current "period of market nervousness" is coming to an end.
Useful statement from Jean-Claude Trichet
CentralbankNews.com is pleased to see the ECB making constructive use of its website in the current crisis. On Tuesday August 14 its home page featured prominently a statement by Jean-Claude Trichet, the president, about the current financial market…
ECB injects a further €47.7 billion
After adding €155.9 billion ($212 billion) to money markets late last week, European Central Bank (ECB) lent heavily again on Monday.
Japan injects 1.6 trillion into money markets
The Bank of Japan injected 1 trillion ($8.4 billion) into the money markets Friday and 600 billion Monday in an effort to counter shockwaves triggered by the US subprime crisis.
Central banks' use of websites in the crisis
Central banks have been using their websites in novel ways during the crisis. On 13 August, the New York Fed put the following notice up:"The Desk will evaluate whether it needs to inject additional cash into the banking system at its normal operating…
Statements on liquidity injections
The Federal Reserve Bank of New York released a brief statement regarding its intervention to inject liquidity into the markets. It said it is providing liquidity to facilitate the "orderly functioning of financial markets" and will provide reserves as…