New BIS analysis of the 2022 Triennial Central Bank Survey shows shifts in trading patterns and market structure in foreign exchange and over-the-counter interest rate derivatives markets, identifying risks deserving attention. Foreign exchange swap positions point to over $80 trillion of hidden US dollar debt, reported off-balance sheet. The volume of daily foreign exchange turnover subject to settlement risk remains stubbornly high despite mechanisms to mitigate such risks.
This information was gathered from the Bank for International Settlements