What the global power shift means for FX
Speakers at the FX Invest North America congress held in Toronto last Tuesday (April 13) noted the rising trend for regional institutions to increase holdings of local currency assets as a result of the crisis.
“Emerging market banks are holding more local currency assets so they can pull lines from western banks as opposed to the other way around where, during the crisis, western banks pulled lines from, for example, Korean banks,” said Ronald Layard-Liesching, founder of Pareto Partners.
Laya
More on Foreign Exchange
Average reported daily UK FX turnover hits record high
Daily turnover of $2,881bn in October 2019, up 2% from previous high of $2,821bn in April
PBoC injects 1.2 trillion yuan as markets plunge
Chinese central bank eases to support economy as coronavirus spreads; Q1 GDP growth could drop to 4%
Spot volumes on platforms resumed downward trend in 2019
But an uptick was seen in FX swaps and forwards submitted for settlement
PBoC extends market closure as coronavirus spreads rapidly
Chinese central bank extends interbank markets closure and vows to maintain ample liquidity
