Chinese banks’ dollar needs are large but unclear – BIS research
Swap lines meet most banks’ dollar needs, but firms may still struggle to access dollars, authors warn
The network of US dollar swap lines has been sufficient to meet most banks’ short-term dollar funding needs, but China is an important exception, a Bank for International Settlements bulletin article says.
Iñaki Aldasoro, Torsten Ehlers, Patrick McGuire and Goetz von Peter measure non-US banks’ net short-term dollar funding needs. They note many banks have longer-term dollar assets, which may insulate them from short-term funding pressures.
On this basis, they find the network of swap lines
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