"I think banks are not at a stage where they need any extra liquidity from the central bank," he said on Dubai TV, Reuters reported from Dubai.

This extra liquidity reduces transaction costs and therefore facilitates trades for the clients, who would otherwise have to accept a worse price or even not be able to trade at all.

It extended its unlimited credit to banks (LTRO's) from one year to three years, and halved the reserve ratio to 1pc to free up more than €200bn in extra liquidity.

The Bank highlighted signs of a slowdown in the world's largest economy after US counterparts took a cautious step towards pumping extra liquidity into the financial system today.

As yet I haven't tested the market but with pressure on the euro threatening another credit crunch TDVs might provide the extra liquidity our economy needs.

The extra liquidity for the new S.& P. index could lure money managers running small-stock index funds, because transaction costs will likely be lower.

The bank also promised to provide extra liquidity as needed.

It should also provide extra liquidity to the banks, in return for collateral they may not be able to use to access funds in the inter-bank market.

Also," he added, "people expect that the Fed will begin to take back all that extra liquidity it provided the market in anticipation of the millennium turn in the fourth quarter.

Perhaps that difference reflects the extra liquidity of a public investment, but eventually it is reasonable to think that the two valuations will come together.