Template-Type: ReDIF-Article 1.0
Author-Name: Pēteris Kloks
Author-Name: Patrick McGuire
Author-Name: Angelo Ranaldo
Author-Name: Vladyslav Sushko
Title: Bank positions in FX swaps: insights from CLS
Abstract: A combination of CLS data with BIS statistics shows banks' FX swaps positions alongside the currency mismatches on their balance sheets. It sheds light on global dollar flows via FX swaps in key currency pairs and, specifically, on banks' use of these instruments to hedge exchange rate risk, engage in arbitrage or serve customers. Compared with Japanese and euro area banks, US banks have played an outsize role in FX swap markets by using maturity transformation to intermediate in the interbank market and between banks and non-banks.
Journal: BIS Quarterly Review
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2309b.pdf
File-Format: Application/pdf
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2309b.htm
File-Format: text/html
Year: 2023
Month: September
Classification-JEL: F31, F34, G15, G21
Handle: RePEc:bis:bisqtr:2309b