Bank of Japan Adds 8 Trillion Yen Through 1-Day Operations

The Bank of Japan added a total of 8 trillion yen ($98 billion) to the financial system in one-day operations today to help ease liquidity.

The central bank also said it will offer to buy 2 trillion yen in Japanese government bonds through repurchases from March 17 to the next day. Separately, the bank said it will supply 5 trillion yen to the system from March 17 to April 18 and another 5 trillion yen from March 16 to March 23.

“While financial institutions are relying on the BOJ’s operations, the latest injections don’t seem to be necessary because calm may be gradually returning,” Shinsuke Kanabu, a project and research director at Tokyo-based money market dealer and broker Central Tanshi Co.

The central bank unleashed a record 15 trillion yen in one- day operations yesterday.

To contact the reporter on this story: Saburo Funabiki in Tokyo at sfunabiki@bloomberg.net.

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net.

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Bank of Japan Governor Masaaki Shirakawa

Tomohiro Ohsumi/Bloomberg

Masaaki Shirakawa, governor of the Bank of Japan.

Masaaki Shirakawa, governor of the Bank of Japan. Photographer: Tomohiro Ohsumi/Bloomberg

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March 14 (Bloomberg) -- Bloomberg's Mark Barton and Mike Firn report on a second hydrogen explosion to rock an atomic plant north of Tokyo where fears of a possible meltdown threaten a region reeling from the nation's biggest earthquake and ensuing tsunami. Tokyo Electric Japan Power Co. said a meltdown remains possible after an explosion at the Fukushima Dai-Ichi No. 3 reactor. To shield the nation's economy from the effects of the quake, the Bank of Japan poured a record amount of cash into the financial system and doubled the size of their asset-purchase plan. Firn speaks from Fukushima prefecture north of Tokyo. (Source: Bloomberg)