Latin American central bank interventions 'mitigate' liquidity shocks
Central banks more concerned with global factors than structural changes to forex markets
A report published by the Bank for International Settlements has suggested central bank intervention in spot and derivatives markets may have “mitigated” the local impact of shocks on liquidity in global forex markets.
The study, published on March 13, examines foreign exchange liquidity in the Americas by taking a closer look at the various metrics used to create a picture of market liquidity. The BIS has been concerned by recent trends towards illiquidity.
“The report draws on the BIS
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