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Central Bank Gives $15.1B To Denmark

10-28-2008

People & Companies in the News

Denmark has received €12 billion ($15.1 billion) from the European Central Bank in an effort to provide neighboring countries with help in the financial crisis, BusinessWeek reports.

The ECB, the central bank for the 15-nation euro zone—of which Denmark is not a member—said the €12 billion ($15.1 billion) swap will remain in effect as long as needed. It was done with the goal of increasing the amount of cash in short-term euro money markets.

The move will make it easier for Denmark, whose krone currency is pegged to the euro, to get access to euros. The ECB provided similar moves for Hungary and Switzerland earlier this month. The swap will provide euros to the Danish bank in exchange for Danish kronor and should lower the exchange rate for euros in Denmark.

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