The Traderszone Network

Published in TZ Latest News 17 May, 2015 by The TZ Newswire Staff

How China Covered The World In "Liquidity Swap Lines"

As we’ve discussed on a number of occasions and at great length, the market is periodically hit by systemic dollar shortages. For instance, in 2007 European commercial banks found themselves staring down a dollar funding gap on the order of several trillion (all in). Meeting USD funding requirements became immeasurably more difficult as the crisis intensified, necessitating what amounted to a Fed bailout via dollar liquidity lines to foreign central banks.

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