BIS stats highlight extent of capital flight

Data posted from the Bank for International Settlements (BIS) on Wednesday provided fresh evidence for the doom-mongers on central and eastern Europe, and went some way to explaining recent movements in exchange rates.

After a relatively small change in the third quarter, the BIS data banks' external claims shrank by 5.4% in the three months to January to $31 trillion, the largest reduction ever recorded in a single quarter.

Claims denominated in dollars and yen dropped 6% and 15% respectivel