Central banks grapple with dollar funding crunch

dollar-layers

Central banks are facing the possibility of having to deal with a liquidity crunch in dollar funding markets, as cash-strapped firms draw down credit lines in the face of the coronavirus shock.

Pressures in money markets had been relatively muted, in contrast to violent moves in equity markets, but signs of stress have started emerging. Measures of the cross-currency basis and the Libor-OIS spread have both widened sharply, indicating many financial firms prefer to hang on to dollar liquidity

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: