Target2 balances reflect euro area’s potential to be better than traditional exchange rate peg regime
Think of it within the context of the balance of payments as foreign exchange reserves that can never be depleted.
In a new 70-page report the BIS has acknowledged that unconventional quantitative cbank operations may have encouraged volatility in repo markets. They advise cbanks to engage in more securities lending operations to ease the problem.
How a high-profile corruption investigation fell apart; Fed officials still holding private meetings; Brexit and Britain’s prohibition; cows now acceptable as collateral in Zimbabwe; area man told his “genius” didn’t entitle him to a larger share of divorce pie; other stuff.