ECB’s Dollar Loans Fail to Soothe Investors: Chart of the Day
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U.S. and European central bank efforts to bolster euro-zone financial firms’ access to dollars haven’t soothed investor concern that the region’s lenders are risky trading partners.
The ECB, in coordination with the Federal Reserve and other central banks yesterday, said it will lend dollars to euro-area banks in a series of three-month loans to help them meet demand for dollar lending. The supply of loans in dollars has fallen as U.S. money-market mutual funds cut lending due to policy makers’ inability to contain the debt crisis.