The European Central Bank made 12 billion euros available to Denmark on Monday, part of its efforts to provide neighboring countries with help in the financial meltdown.
The ECB, the central bank for the 15-nation euro zone _ Denmark is not a member _ said the 12 billion euro ($15.1 billion) reciprocal currency arrangement, or swap with Denmark's central bank would remain in effect as long as needed and was done with the goal of increasing the amount of cash in short-term euro money markets. Credit has been scarce and expensive as the crisis makes banks afraid to lend to one another.
The move will make it easier for Denmark, whose krone currency is pegged to the euro, get access to euros and should lower the exchange rate for euros in Denmark.
The ECB provided similar moves for Hungary and Switzerland earlier this month.
Meanwhile, the Bank of England and Swiss National Bank continued their daily offers of overnight dollars.
The BoE and Swiss National Bank kept up their offers of overnight dollars, part of the ongoing effort to ease credit bottlenecks between lenders.
The BoE offered its usual $10 billion to its limit of 10 bidders and received bids for just under $3 billion. The SNB offered its standard $10 billion and received 7 bids for $6.8 billion.
The lower number of bids suggested that tight credit markets stricken by the world financial crisis are loosening up.
The cost of loans between banks _ a key indicator of wider credit conditions _ has also dropped in both Europe and the U.S. in recent days.
The European Central Bank did not take part in the operations, saying it would monitor the market and only offer liquidity when it sees it necessary.
In another brief statement posted on the ECB's Web site Monday, the central bank said G-7 finance ministers and central bank governors were paying particular attention to the Japanese yen and its recent fluctuations.
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