The recent quietly initiated dollar liquidity supply measures by the Bank of Japan are drawing widespread attention to the deep pressures within the global financial system.
On July 15, the Bank of Japan announced that starting from July 17, it would provide dollar funds to the market in the form of pooled collateral. This seemingly routine liquidity management operation has been interpreted by macro analyst EndGame Macro as possibly indicating that more serious systemic risks are brewing.
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This analyst's viewpoint is based on the observation of increasing internal pressures within the global dollar financing ecosystem, as well as the cumulative effect of continued hawkish policies by Federal Reserve Chairman Jerome Powell.