BIS warns of $13 trillion hidden debt hole
Trillions of dollars of FX derivatives are not being accounted for when calculating the level of debt in the global economy
The Bank for International Settlements (BIS) has estimated some $13 trillion of debt is currently being under-reported in the global economy due to accounting practices that exclude foreign exchange derivatives from the balance sheets of financial and non-financial institutions.
The figures are the result of research by Claudio Borio, head of the BIS’s monetary and economic department, Robert McCauley, a senior adviser, and Patrick McGuire, head of the BIS international data hub. It was
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