Sources: Bank of England reviewing dollar risk exposure of lenders
According to a report by Jinse Finance, citing Jintou News, sources say that the Bank of England has asked some banks to test their resilience against potential shocks to the US dollar. This is the latest sign of how the Trump administration’s policies are eroding trust in the US as a cornerstone of financial stability. People with direct knowledge of the matter said the Bank of England has asked some banks to assess their US dollar funding plans and the extent of their reliance on the dollar. Another source said that on one occasion, a UK-based global bank was asked to conduct a stress test that included a scenario in which the US dollar swap market could completely dry up. An analyst noted that this reflects a new trend, where trust in international cooperation appears to be breaking down.
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