BIS analysis finds ‘huge’ debts hidden in FX derivatives is the reason they want to swap your money inside the banks to useless CBDC's. They are bankrupt folks to the tune of 100s of Trillions of Dollars.
The Bank of International Settlements (BIS) is a relatively unheard of bank, for most. The so-called “central bank to the world’s central banks,” the BIS ensures that international capital flows can continue on a regular basis. However, what has perked up the ears of many investors and doomsayers are calls for concern from the BIS in its latest quarterly report, noting a potential $80 trillion FX swap debt “blind spot.”
You read that right. There’s a potential $80 trillion of capital that’s being held in shadow banks and non-US banks, essentially hidden from the ledgers of the BIS. This is a staggering amount of money, with some estimates putting the amount at roughly 14% of all financial assets globally.
With mounting global macroeconomic concerns tied to rising interest rates and inflation, this isn’t easy news to hear. Many investors who are already taking bearish positions may look to such data as the latest reason to sell.
Let’s dive into what this news means for the average investor.
Let’s start with what an FX swap really is. Foreign currency exchange swaps (FX swaps) allow banks and large institutions to swap interest payments on one loan made in a local currency with another in a foreign currency. In other words, two companies can swap their debt amounts, paying the interest in dollars other than their own.
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