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FX market becoming stronger transmitter of stress, IMF warns

Fund probes changing structure of world’s ‘largest and most liquid financial market’

International Monetary Fund Headquarters 2, Washington, DC
International Monetary Fund Headquarters 2, Washington, DC
Photo: John Harrington

The significant structural changes in the global foreign exchange market over recent years have made it a more potent transmitter of financial stress, the International Monetary Fund says.

An early-release chapter of the fund’s Global Financial Stability Report, published today (October 7), explores these structural changes and how they have reshaped dynamics in the world’s “largest and most liquid financial market”. Despite this depth and liquidity, IMF economists conclude that the market is

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