Last week, I wrote that central banks were no longer in a position to ignore the liquidity drawdowns caused by “the relentless increase in the forex value of the U.S. dollar, the sharp run-off in bank reserve balances, the furious rise in interest rates and the rapid reduction of their balance sheets.” Many countries are now getting into the action in some form or another. In recent days, the Bank of Japan sold dollars, the Bank of England bought bonds and the People’s Bank of China relaxed their monetary stance.
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By Hubert Marleau
By Hubert Marleau
