Central banks are no longer in a position to ignore the liquidity drawdown caused by the strength of the U.S. dollar, the sharp decline in reserve balances and the shrinking of the Fed’s balance sheet. In the past week, the Bank of Japan, the Bank of England and the People’s Bank of China intervened, selling dollars, buying bonds or easing their monetary stance.
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By Hubert Marleau
By Hubert Marleau
