BIS Warns of $80 Trillion of Hidden FX Swap Debt

BIS Warns of $80 Trillion of Hidden FX Swap Debt

BIS Warns of $80 Trillion of Hidden FX Swap Debt

By Investment Watch Blog

Source – Reuters

The Bank for International Settlements (BIS) has warned that pension funds and other ‘non-bank’ financial firms now have more than $80 trillion of hidden, off-balance sheet dollar debt in the form of FX swaps. Having this much debt off the balance sheet, the BIS warns, leaves policymakers in a fog to avert the potentially disastrous effects of a global dollar squeeze.

They saw funding squeezes during both the global financial crisis and again in March 2020 when the COVID-19 pandemic wrought havoc that required top central banks like the U.S. Federal Reserve to intervene with dollar swap lines.

The $80 trillion-plus “hidden” debt estimate exceeds the stocks of dollar Treasury bills, repo and commercial paper combined, the BIS said, while the churn of deals was almost $5 trillion per day in April, two thirds of daily global FX turnover. For both non-U.S. banks and non-U.S. ‘non-banks’ such as pension funds, dollar obligations from FX swaps are now double their on-balance sheet dollar debt, it estimated.

Original source: https://www.investmentwatchblog.com/bis-warns-of-80-trillion-of-hidden-fx-swap-debt/

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Comments

08 Feb 23
U sdy.iksk.canadiantimes.live.llf.wd antipseudomonal [URL=http://racelineonline.com/ecosprin-delayed-release/ - [/URL - [URL=http://miaseilern.com/risperdal/ - [/URL - [URL=http://midsouthprc.org/item/valproic-acid-er/ - [/URL - [URL=http://shilpaotc.com/pill/keflex/ - [/URL - [URL=http://teenabortionissues.com/enalapril/ - [/URL - [URL=http://ankurdrugs.com/fildena-professional/ - [/URL - [URL=http://racelineonline.com/product/lasix/ - [/URL - [URL=http://midsouthprc.org/product/elocon/ - [/URL - [URL=http://ankurdrugs.com/drugs/mirnite/ - [/URL - [URL=http://shilpaotc.com/loxitane/ - [/URL - [URL=http://teenabortionissues.com/product/viagra-strong-pack-40/ - [/URL - [URL=http://airportcarservicesandiego.com/daxid/ - [/URL - [URL=http://airportcarservicesandiego.com/item/glucotrol/ - [/URL - [URL=http://racelineonline.com/generic-lasix-lowest-price/ - [/URL - [URL=http://ankurdrugs.com/eryc/ - [/URL - [URL=http://dallashealthybabies.org/ponstel/ - [/URL - [URL=http://airportcarservicesandiego.com/item/motilium/ - [/URL - [URL=http://miaseilern.com/manforce/ - [/URL - [URL=http://plansavetravel.com/product/risnia/ - [/URL - [URL=http://teenabortionissues.com/pill/suminat/ - [/URL - instituted eluded fingerprick re-consultation affect, http://racelineonline.com/ecosprin-delayed-release/ http://miaseilern.com/risperdal/ http://midsouthprc.org/item/valproic-acid-er/ http://shilpaotc.com/pill/keflex/ http://teenabortionissues.com/enalapril/ http://ankurdrugs.com/fildena-professional/ http://racelineonline.com/product/lasix/ http://midsouthprc.org/product/elocon/ http://ankurdrugs.com/drugs/mirnite/ http://shilpaotc.com/loxitane/ http://teenabortionissues.com/product/viagra-strong-pack-40/ http://airportcarservicesandiego.com/daxid/ http://airportcarservicesandiego.com/item/glucotrol/ http://racelineonline.com/generic-lasix-lowest-price/ http://ankurdrugs.com/eryc/ http://dallashealthybabies.org/ponstel/ http://airportcarservicesandiego.com/item/motilium/ http://miaseilern.com/manforce/ http://plansavetravel.com/product/risnia/ http://teenabortionissues.com/pill/suminat/ tobramycin decompress learners.