4 October 2016

Global Shortage of USD

By benbam

A surge in banks’ demand for the European Central Bank’s dollar funding increased concerns on Friday that fears over Deutsche Bank AG where forcing lenders to stock up on greenbacks.

But there are signs that the drawdown may have more to do with U.S. financial reform.

As investors continue to fret over Deutsche Bank, a jittery market is likely to continue leaping to negative conclusions. Among investors’ concerns was ECB data that showed banks had asked for more dollar loans from the ECB than at any time since the height of the euro crisis in 2012.

http://blogs.wsj.com/moneybeat/2016/09/30/theres-a-scramble-for-dollars-but-dont-look-at-deutsche-bank/

 

Japan: Why should there be a shortage of USD in Japan when the USDJPY is at its 3 year lows?

http://www.hnworth.com/article/2016/10/03/demystifying-the-financial-anomaly-shortage-of-usd-and-basis-swaps/

 

China capital exodus accelerates as further yuan weakness seen

http://www.businesstimes.com.sg/banking-finance/china-capital-exodus-accelerates-as-further-yuan-weakness-seen