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The Federal Reserve added 38 billion dollars in temporary reserves to the US money markets Thursday in four separate operations to ease tight credit conditions. The Federal Bank of New York added six billion dollars in 14-day repurchase agreements, 20 billion dollars in 14-day repurchase agreements.

Seven billion dollars in seven-day repurchase agreements and five billion dollars in one-day repos. The US central bank typically buys billions of dollars worth of securities from major banks, pumping extra cash into the banking system, which the banks are obliged to repurchase at a later date.

The New York Fed, which conducts the operations, has injected hundreds of billions of dollars into the financial system since early August, when credit flows seized up due to problems linked to the distressed US mortgage market.

Copyright Agence France-Presse, 2007


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