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LEAD: BOJ injects 400 bil. yen into money market, 13th day of operations.

TOKYO, Oct. 4 Kyodo


The Bank of Japan pumped 400 billion yen into the Tokyo money market Friday in a further effort to facilitate interbank borrowing particularly by foreign financial institutions.

The latest injection marks the 13th straight business day of emergency operations by the central bank since major U.S. investment bank Lehman Brothers Holdings Inc. went bankrupt on Sept. 15.

The BOJ injected 800 billion yen in the morning, but drained 400 billion yen in the afternoon as the cost of overnight borrowing for foreign banks declined slightly. The Friday operations brought the total amount of funds injected into the financial system by the BOJ over the last two weeks to 23.9 trillion yen.

The operation was conducted under a competitive bidding system.

The weighted average of unsecured overnight call money rates, the key interest rate applied to banks borrowing from each other, ended the day at 0.469 percent, down 0.001 percentage point from Thursday and below the BOJ's official target of 0.5 percent.
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Publication:Japan Weekly Monitor
Date:Oct 6, 2008
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