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The story behind how the scramble for intraday liquidity helped to create US tri-party repo and a shadow central banking system.
Mike Mackenzie’s daily analysis of what’s moving global markets
Political risks prompt rethink of US currency’s weighting in foreign exchange reserves
What would it mean if the entire paradigm for long-term investing was to change?
Banks need much higher level of reserves to feel secure than pre-crisis
US currency has retained its strength against other currencies despite rate cuts
And how it came to impact repo rates.
The NY Fed is responding to a major repo rate spike, which some analysts are blaming on a structural shortage of bank reserves but weirdly enough not on the oil price.
International spillovers from monetary policy have been amplified by increased globalisation
New approach would alleviate influence of capital outflows, BoE governor says
Analysts are taking the threat of intervention in currency markets seriously
The novelty of an interventionist approach gains cross-party traction on Capitol Hill
The US cannot unilaterally weaken the dollar
Renminbi’s fall stokes US ire
Announcing the end of the strong dollar policy is easier than actually ending it
South Africa’s rand bears the brunt as investors redraw US rate expectations
Sterling hits 30-month low after Fed implies further US rate cuts are not guaranteed
Institutions diversify reserves away from the dollar in the first half as trade tensions simmer
Foreign investors face easier ride as price for dollar hedges starts to back down
Widely viewed as a safe asset, nearly 80% of the US notes are now held overseas