CBs Archive

Fed increasing $ vs fx swap lines to ECB and others

[Skip to the end] This is an extension of credit to those CBs which functionally allows them to borrow (and thereby also get ‘short’) USD, presumably to fund their local USD needs for their institutions short USD, and presumably to cover losses on their USD financial assets and to finance the remaining ...Read More

Central banks trying to limit backup

[Skip to the end] Karim writes: ECB-Board Member Bini Smaghi was 4th board member since last week’s press conference to say that one 25bp hike was enough to return inflation back to the 2% target in 2yrs time (Trichet, Stark, Orphanides before him). Whether true or not, market reaction since last Thursday ...Read More

DXY and exports

[Skip to the end] Dollar Index vs US Exports Right – seems to me the dollar will fall until it’s at a level where the trade gap goes to about zero. So even though exports are way up and the trade gap down, there could be a lot more to go. A ...Read More