Intraday FX swaps could signal new dawn for liquidity management

Intraday FX swaps could signal new dawn for liquidity management

In the rapidly moving foreign exchange market, every second counts – and not just in trading where markets can move in microseconds. In intraday liquidity management, time is also of the essence. 

A large international bank might start the day with $30 billion of US dollar liquidity held at the US Federal Reserve, for example. In the course of the day, its holdings could drop to, say, $22 billion, then close at their starting level, involving $8 billion of intraday US dollar liquidity use.

Bank

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