AI Snips
Chapters
Transcript
Episode notes
Dollar's Impact on Emerging Markets
- US dollar reached multi-decade highs during risk-off periods.
- It retreated during risk-on phases, easing emerging market financial conditions.
FX Trading Shift
- FX trading is shifting from multilateral platforms to less visible venues.
- This shift reduces market transparency and could fragment markets.
Hidden Dollar Debt
- Off-balance sheet dollar debt from FX swaps exceeds $80 trillion globally.
- For non-US entities, this hidden debt is more than double their visible on-balance sheet dollar debt.