Major central banks acted today to try to shore up confidence in the global financial system by extending a programme that makes it easier for banks to borrow US dollars.
The move renews for a year a measure that was unveiled in November 2011 in response to Europe's debt crisis. It had been set to expire in February.
The programme lets central banks swap their currencies at the US Federal Reserve in exchange for dollars.
Commercial banks can then borrow dollars, the dominant currency of trade, at low rates.
Central banks pay the Fed interest on the dollars they lend to commercial banks.
The measure is intended to help stabilise a global financial system straining from Europe's financial crisis and slowing growth worldwide.
The central banks issued news releases simultaneously today in a coordinated signal to investors and lenders that they will continue to try to ease global financial strains.
Taking part in the move is the Fed, the ECB, the Bank of England, the Swiss National Bank and the Bank of Canada.
The Bank of Japan is to consider the measure at its next meeting.
The ECB also said it would continue its operations to lend dollars to banks for one week and three months. The ECB has said it could buy bonds issued by heavily indebted countries. That step could drive down borrowing costs for financially troubled governments and indirectly for companies.
The coordinated action follows other recent efforts by the ECB, Fed and Bank of England to strengthen their financial systems and economies.
European Union nations earlier today agreed on the foundation of a fully fledged banking union. And Greece's euro partners approved billions in bailout loans that will prevent the nation from going bankrupt.
The Fed said last night that it planned to keep US interest rates ultra-low even after unemployment falls close to a normal level, which it thinks could take three more years. And it said it will keep spending $85 billion a month on bond purchases to drive down long-term borrowing costs and stimulate economic growth.
