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The BIS ''Hidden USD Debt'' Story Explained

Market Depth

CHAPTER

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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