Guy Debelle, Deputy Governor of the Reserve Bank of Australia, spoke in a phone interview.
He was speaking in his role as head of the Global Foreign Exchange Committee. Bloomberg with the report:
- Debelle warned that even though volatility has subsided, liquidity in G10 currencies has only returned to "around 80% of where it was"
- "the depth of liquidity is not what it was"
- "Liquidity is decent but it's not completely back"
- "Markets in the Asian region are much more back to normal than say Latin American for example"
On the USD:
- The demand for the US dollar was also less universal than perceived during the crisis
- markets like Australia and Canada showing little evidence of a shortage
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Comments from Debelle on liquidity are a heads up for the potential of outsized moves whould thre be market-moving news about. A bit of a heads up.
