The ECB announced today it was acting with the Bank of Canada, the Bank of England, the Bank of Japan, the US Federal Reserve and the Swiss National Bank to lower the cost of US dollar swaps by 50 basis points.
The central banks also agreed to set up liquidity swap arrangements to provide liquidity in each jurisdiction in its national currency.
The ECB said in a statement: "The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesess and so help foster economic activity."
The move is designed to head off a liquidity crunch in the banking sector as banks are increasingly wary of lending to each other.
Sounds like the Fukushima reactors aren't the only things melting down...soon to be followed by the Euro currency printing presses.