The Bank of Canada is joining the U.S. Federal Reserve and central banks in Europe and Japan to shovel up to a quarter of a trillion dollars into global money markets as they strive to restore confidence in the world's battered financial system.

In a statement issued at 3 a.m. ET, the Bank of Canada said it is acting with the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan and the Swiss National Bank with "co-ordinated measures designed to address the continued elevated pressures in U.S.-dollar short-term funding markets."

In particular, the Bank of Canada and the Federal Reserve have established a $10-billion US reciprocal currency arrangement to provide U.S.-dollar liquidity in Canada.

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http://www.cbc.ca/money/story/2008/09/18/central-banks-markets.html