07
Oct
By: Andrea Deghi, Mahvash S. Qureshi, Tomohiro Tsuruga
Policymakers should enhance market surveillance through systemic risk monitoring including stress testing and scenario analysis
Foreign exchange is the largest and most liquid financial market, with nearly $10 trillion changing hands daily. It’s the underpinning for global trade and finance—and its structure is changing as nonbank financial institutions, or NBFIs, assume a larger role in transactions used to manage currency risk and access to foreign funding.
The market’s central role in the international monetary and financial system makes it...