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The BIS ''Hidden USD Debt'' Story Explained

Market Depth

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What Happens if Trade Growth Stops?

For the system to stay in equilibrium, it needs continuous flow of fresh dollars. The second problem is there is a maturity mismatch between the dollar funding and the dollar assets. And therefore, there is a rollover risk, especially during stress times. I took Korea because it's a very open global economy that warms and thrives on strong global trade growth.

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