Fresh warnings on US dollar scarcity
The problem for non-US banks is simple. The regulations are tighter than ever and mean they need to hold funding currencies. The problem is that the US dollar remains the dominant funding currency and they can't always get access in crunch time, because they can't borrow directly from the Federal Reserve like US banks.
US dollar currency scarcity drove Societe General to its worst trading day of the year in December 2016 and other banks are continuing to fret about whether dollars will be there to borrow when needed.
