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Banks should better balance liquidity among themselves – Riksbank

US fiscal position also places “serious questions” over dollar’s role as reserve currency, bank says

Sveriges Riksbank
Arild Vågen (https://bit.ly/3yE3Yca)

Sweden’s central bank would like to see countries’ lenders lend more to each other – and borrow more from each other – on the overnight markets.

To accompany the release today (May 28) of its financial stability review, the Sveriges Riksbank published an article telling banks that activity in the overnight lending markets should “not be constrained by stigma” as quantitative tightening (QT) led to decreased levels of liquidity.

It said lenders with Riksbank certificates – securities with seven-day

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