<ul>
<li>New BIS analysis of the <a href="https://www.bis.org/statistics/rpfx22.htm"><span class="firstword">2022</span> Triennial Central Bank Survey</a> shows shifts in trading patterns and market structure in foreign exchange and over-the-counter interest rate derivatives markets, identifying risks deserving attention.</li>
<li>Foreign exchange swap positions point to over $80 trillion of hidden US dollar debt, reported off-balance sheet. </li>
<li>The volume of daily foreign exchange turnover subject to settlement risk remains stubbornly high despite mechanisms to mitigate such risks. </li>
</ul>
The EU has lifted some restrictions on the trade and financing of Russian coal and chemical to avoid an energy and food security crisis in poorer countries, but the upcoming ban on oil may have an even deeper impact.
This feature analyses decentralised finance (DeFi), a new form of crypto intermediation that uses automated protocols on blockchains and stablecoins to facilitate fund transfers. Even though links with traditional finance are currently contained, DeFi warrants closer monitoring because of high leverage, limited shock-absorbing capacity and built-in interconnectedness.
<ul>
<li>
<p><span>Non-bank financial intermediaries (NBFIs) have grown significantly. Their activities can amplify market stress and undermine financial stability.</span></p>
</li>
<li>
<p><span>A macroprudential regulatory approach is needed to address the structural vulnerabilities in NBFIs, most notably liquidity mismatches and hidden leverage.</span></p>
</li>
<li>
<p><span>Concerns about a new virus variant late in the period under review<a href="https://www.bis.org/press/p211206.htm# ftn1" name=" ftnref1" class="hashlink"><span class="firstword">1</span></a> curtailed investors risk appetite. Financial conditions tightened in several emerging market economies where inflationary pressures persisted.</span></p>
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