SYDNEY, Aug 17: Australia’s central bank on Friday injected a larger than usual $3.87 billion into the banking system as fears of a credit crunch jolted global markets. The Reserve Bank of Australia (RBA) revealed in data that the cash it pumped into the system on a short-term basis was well above its average daily injection for the year of $1.9 billion.

The bank injected another $3.04 billion into the banking system on Thursday as central banks around the world scramble to boost liquidity and ease fears of a credit crunch spawned by the US sub-prime mortgage market crisis.

Australian stocks plunged a breathtaking five per cent during Thursday’s trade but managed to claw back some losses to close 1.3 per cent lower.—APP