Japan's central bank to provide dollar funds for 40 financial institutions

TOKYO, Sept. 22 (Xinhua) -- The Bank of Japan (BOJ) said Monday it will provide dollar funds for 40 Japanese and foreign financial institutions through auction as part of six major central banks' coordinated action to regulate the market in short-term finance between banks and other financial institutions.

The BOJ, which plans five auctions by the end of November, will hold the first one on Wednesday to lend up to 30 billion U.S. dollars for one month to the 40 financial institutions selected by the BOJ. Among them are the Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp., Mizuho Bank, Goldman Sachs (Japan) Ltd. and Credit Suisse Securities (Japan) Ltd.

Meanwhile, in order to ease pressures on money market, the BOJ pumped emergency fund into money market for a fifth straight working day Monday, bringing the aggregate amount to 12.5 trillion yen (117.92 billion dollars).

On Thursday six central banks such as the BOJ, the U.S. Federal Reserve and the European Central Bank decided to take coordinated measures to mitigate the negative effect exerted by the current turmoil in the global financial market.

As part of the measures, the BOJ had a currency swap deal worth60 billion dollars (571.43 million dollars) ith the Fed to provide dollar funds to Japan's worst-hit financial institutions.