The International Monetary Fund (IMF) Managing Director Christine Lagarde Thursday welcomed the coordinated decision by the European Central Bank, the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank to conduct additional U.S. dollar liquidity-providing action.
"The path to recovery needs collective action by both political leaders and central banks. What we saw today was exactly what is needed. It shows central banks will do whatever it takes to restore stability," the IMF chief said in a short statement.
These central banks have decided to provide U.S. dollar liquidity to euro-area banks in a series of three-month loans starting from Oct. 12.
This move came in as Europe's ongoing debt crisis has spilled over to the bank sectors and has made market access to the U.S. currency difficult, which weighed heavily on the financial markets.
In a curtain-raising Thursday speech prior to the IMF annual meetings slated for late September, Lagarde stressed that the confidence that the world so badly needs will not return without collective resolve, as the world has entered a dangerous new phase of the crisis.