Bank of Japan Pumps 3 Trillion Yen to Money Market

The Bank of Japan on Friday continued to pump funds into money markets with a further injection of 3 trillion yen (37.04 billion U.S. dollars).

The move is aimed at easing market concerns about the economy, protecting the nation’s banking system and helping banks and other institutions in quake-hit areas raise necessary funds in the wake of the crippling March 11 earthquake and ensuing tsunami.

The BOJ conducted emergency operations for the fifth day in a row, bringing its total liquidity injection to 63.6 trillion yen (785.93 billion dollars) since Monday.

Analysts say that the economic damage by Friday’s massive earthquake and tsunami is far larger than originally thought.

And continued disruption to the stock market caused by an ongoing nuclear crisis at a quake-hit power plant and slumping production as a direct result of the quake may drive the world’s third largest economy into a far worse state. – PNA

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