are increasing the financial system\u2019s vulnerability<\/a> to interest rates and reducing governments\u2019 ability to spend their way out of crises.<\/p>\n\u201cThis trend cannot continue,\u201d Carstens said referring to the rising debt levels and he said that higher military spending could push the debt up further.<\/p>\n
Hyun Song Shin, the\u00a0BIS\u2019s main economic adviser, also flagged the sharp fall in the\u00a0dollar. It is down 10% since the start of the year and on track to be its biggest first-half drop since the free-floating exchange rate era began in the early 1970s.<\/p>\n
Hyun Song Shin, the\u00a0BIS\u2019s main economic adviser, flagged the sharp fall in the\u00a0dollar, which is down 10% since the start of the year. AFP via Getty Images<\/p>\n
Shorter-term analysis, though, showed \u201chedging\u201d by non-US investors holding Treasuries and other US assets appears to have made an \u201cimportant contribution\u201d to the dollar\u2019s slide over the last few months.<\/p>\n
\u201cWe haven\u2019t seen anything (yet) that would give us any cause for alarm,\u201d Shin added.<\/p>\n
The\u00a0BIS\u00a0had already published one part of its report last week that gave a\u00a0stark warning\u00a0about the rapid rise of so-called stablecoins.<\/p>\n
The Bank for International Settlements headquarters in Basel, Switzerland. doganmesut \u2013 stock.adobe.com<\/p>\n
He said there was no evidence that this was the start of a \u201cgreat rotation\u201d away from US assets as some economists have suggested, but acknowledged that it was still too early to know given sovereign funds and central banks move slowly.<\/p>\n
In terms of the\u00a0BIS\u2019 own finances, it said it made a net profit of $1.2 billion, while its total comprehensive income reached a record high of $5.3 billion and currency deposits at the bank also reached a new high.<\/p>\n
\u201cIt is important that the\u00a0BIS\u00a0has the highest creditworthiness out there,\u201d Carstens said.<\/p>\n","protected":false},"excerpt":{"rendered":"Trade tensions and fractious geopolitics risk exposing deep fault lines in the global financial system, the central bank…\n","protected":false},"author":3,"featured_media":26084,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,821,69,79,1597,142,2175,67,132,68,15393],"class_list":{"0":"post-26083","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-cryptocurrency","10":"tag-donald-trump","11":"tag-economy","12":"tag-federal-reserve","13":"tag-jerome-powell","14":"tag-tariffs","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us","18":"tag-us-dollar"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114770124725266687","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/26083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=26083"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/26083\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/26084"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=26083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=26083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=26083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}