Fed’s repo pump another tool in the war for dollars

By Ross Lancaster
01 Apr 2020

The US Federal Reserve’s Tuesday action to set up a repo market with other central banks has provided further ammunition in the fight for global dollar liquidity.

One of the most perturbing market reactions to the spread of the coronavirus and the dramatic fall in the oil price during the last month has been dollar shortages. With dollar demand escalating as dealers and investors hoard for safety, dysfunction has spread into cross-currency basis swaps, and ...

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