US, Canada, Britain, Switzerland to aid crisis-hit euro

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Central banks in Britain, Canada, Switzerland and the United States will intervene to ensure that dollar shortages do not occur in European markets, the European Central Bank said on Monday.

"In response to the re-emergence of strains in US dollar short-term funding markets in Europe, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing the re-establishment of temporary US dollar liquidity swap facilities," the ECB said.

"These facilities are designed to help improve liquidity conditions in US dollar funding markets and to prevent the spread of strains to other markets and other financial centres," it stressed.

"The Bank of Japan will be considering similar measures soon," the ECB added.

© 2010 AFP

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