The world’s main central banks have joined forces to counter the effects of the eurozone crisis on the world economy.
The banks of the US, eurozone, Japan, Canada, Britain and Switzerland have agreed to lower the price on existing dollar swaps.
The aim is to pump liquidity into the global financial system, and keep funds flowing through markets rocked by Europe’s sovereign debt difficulties.
The unannounced move quickly had a positive and dramatic effect on world markets, driving share prices up by several percentage points.
The banks’ intervention comes after the failure so far of European policymakers to come up with an effective solution to the debt crisis in the common currency bloc.