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ECB pulls out $89 bln

The European Central Bank withdrew €65 billion ($88.7 billion) from the eurozone money market yesterday in its weekly refinancing operation in a bid to soak up excess liquidity.

The European Central Bank for the 13-country eurozone put €210 billion ($285 billion) at the disposal of banks, €65 billion less than one week ago. The ECB pumped €275 billion into the market in the previous refinancing operation to alleviate a credit crunch prompted by a crisis in the US home loan market. Earlier it withdrew €35 billion from the supply in its weekly refinancing operation. It said that money markets were returning to normal following recent turbulence, signaling a gradual end of the credit squeeze. (gulf-daily-news.com)