Estimate of “hidden” debt of more than $80 trillion exceeds stocks of dollar Treasury bills, repos and commercial paper combined, according to the BIS, while trade flow was almost $5 trillion a day in April, two thirds of daily business with currencies.
The dollar obligations of currency swaps are estimated to be twice the dollar debt on the balance sheets of banks and nonbanks in the United States, such as pension funds.
“The dollar debt missing from FX swaps/forwards and FX swaps is huge,” the Swiss-based institution said, describing a lack of direct information on the scale and location of the problems as the issue. key code.
“In times of crisis, policies to restore the smooth short-term flow of dollars in the financial system (for example, central bank swap lines) are shrouded in fog.”