Now i am beginning to speculate on Asia buying gold between this the bridge bank and creation of a World financial organization
biz.yahoo.com
Japan premium widens on worries over banks
TOKYO, June 24 (Reuters) - The Japan premium, the extra cost Japanese banks have to pay in the
euro interbank markets, widened on Wednesday due to deepening worries over some Japanese
banks, bankers said.
For three-month euroyen interest rates, the premium was 30 basis points (BPS) over the 0.38
percent European and U.S. banks with better credit ratings are paying.
The premium was 24 to 25 BPS on Tuesday and 20 to 21 BPS on Friday.
''The growing possibility that the Long-Term Credit Bank of Japan will be eventually shut down is
making investors and foreign banks extremely wary of offering funds to Japanese banks overall,'' a
trader at a foreign bank's Tokyo branch said.
In the eurodollar market, the premium also rose, making it difficult for some major Japanese banks
to raise as many dollars as their commercial needs warranted, bankers said.
In the forward currency market, those Japanese banks also had difficulty raising dollars because
some foreign banks reduced their exposure to them, they added.
Some speculated that those Japanese banks that are facing difficulties in procuring funds in the
interbank money market may be tapping the spot dollar/yen market, pushing the dollar up against the
yen this morning.
ANGKOK, Thailand (Reuters) - The
United Nations on Monday called for the
creation of a World Financial Organization
(WFO) to formulate an international debt
strategy to tackle Asia's growing financial
crisis.
www2.cnnfn.com |
