HKMA policy eased post-Lehman stress
The Hong Kong Monetary Authority's policy actions effectively reduced the foreign-exchange swap market dislocations after the failure of Lehman Brothers, new research from the central bank posits.
The research shows that the central bank's and the government's actions improved the efficiency of the money and foreign-exchange swap markets in which market liquidity froze in the wake of Lehman's collapse.
The research notes that, in particular, measures which provided additional longer-term funding
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