Eurozone’s banks cutting dollar businesses [Sober Look]

As predicted back in February, European banks are beginning to exit their dollar businesses. They’ve reduced dollar denominated loans and sold dollar assets.

MarketWatch/Business Wire: This reduced appetite for MMF funding has likely contributed to a significant dip in Eurozone bank lending to project and trade finance, sectors that historically have largely been USD-denominated.

That in turn has led to a reduced need for the Fed’s dollar swap facility, which has fallen off sharply.

Fed Liquidity Swap Facility

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