Activity in the $5 trillion-a-day foreign exchange market has been shrinking steadily since peaking in late 2014, risking future financial stability, the Bank of International Settlements said. “Any major changes to liquidity conditions might have consequences for market risk and the effectiveness of the hedging strategies of corporates, asset managers and other foreign exchange end users,” says Hyun Song Shin, head of research for BIS.
Reuters (11 Dec)
