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European central banks offer more overnight money

European central banks offer more overnight money

The Bank of England and the Swiss National Bank both offered more overnight dollar liquidity to banks on Tuesday, but there was less demand for the cash than in recent weeks _ suggesting credit bottlenecks created by the financial crisis are easing.
The Bank of England offered $10 billion to its standard limit of 10 bidders. It received bids for only $3 billion.
The SNB offered its standard $10 billion and received bids for $6.8 billion from 8 bidders.
The waning size of bids in recent days indicates credit markets, which have been tightened by the world financial crisis, are now 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 offer any overnight funds. It has said it would monitor the market and only offer short-term liquidity when it finds it necessary.


Updated : 2021-07-27 20:03 GMT+08:00