FX Swap Debt a $80 Trillion ‘Blind Spot,’ BIS Says

FX Swap Debt a $80 Trillion ‘Blind Spot,’ BIS Says
A picture illustration of the U.S. dollar, Swiss Franc, British pound, and Euro banknotes, taken in Warsaw, Poland, on Jan. 26, 2011. Kacper Pempel/Reuters
Reuters
Updated:

LONDON—Pension funds and other “non-bank” financial firms have more than $80 trillion of hidden, off-balance sheet dollar debt in FX swaps, the Bank for International Settlements (BIS) said.

The BIS, dubbed the central bank to the world’s central banks, also said in its latest quarterly report that 2022’s market upheaval had largely been navigated without major issues.