Hey friends, This issue was highlighted by Aleš on Discord.
Reuters reported: Pension funds and other 'non-bank' financial firms have more than $80 trillion of hidden, off-balance sheet dollar debt in FX swaps, the Bank for International Settlements (BIS) said.
The news that came out was based on the quarterly report from the Bank of International Settlements (BIS). While the BIS has always been a very mundane source of reporting, I’m quite intrigued with the way they have written this article discussing “hidden” debt.
The discussion is around FX swaps that are missing on balance sheets of non-financial institutions. Reuters has incorrectly reported the amount to be $80 trillion owed by pension funds and non-banking financial institutions. This is simple wrong.