The Bank of Japan said Tuesday it will provide an additional $4.77 billion to money markets as part of measures to ease tensions over funding conditions for commercial lenders affected by the sovereign debt crisis in Europe.
It will be the biggest move since the BOJ reintroduced such operations in May 2010. The move follows an agreement last month between six central banks, in the U.S., Japan, Canada and Europe, to boost dollar-fund injections into domestic markets.
In an auction held Tuesday, bids for the short-term funds totaled $4.77 billion and the BOJ accepted all of them.