Alfonso Peccatiello (Alf) on Money Printing, US Risks and ECB Surprises
Macro Hive Conversations With Bilal Hafeez
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Reserves Are for Regulatory Liquidity
Having more reserves on the oter side of the balance heat achieves two things for banks. The first is they have more liquidity to settle inte bank payments. And you're kieping an inert asat that owns no return, because in europe it even yields negative 50 basis point. If those things don't change, regulation, lon elds or the credit worthiness of the private sector, european banks can have gazilian reserves, they still won't land.
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