{"id":64699,"date":"2023-01-12T07:23:47","date_gmt":"2023-01-12T12:23:47","guid":{"rendered":"https:\/\/olduvai.ca\/?p=64699"},"modified":"2023-01-12T07:23:47","modified_gmt":"2023-01-12T12:23:47","slug":"visualizing-65-trillion-in-hidden-dollar-debt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=64699","title":{"rendered":"Visualizing $65 Trillion In Hidden Dollar Debt"},"content":{"rendered":"
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Visualizing $65 Trillion In Hidden Dollar Debt<\/a><\/h3>\n<\/header>\n
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The scale of hidden dollar debt around the world is huge.<\/p>\n

As Visual Capitalist’s Dorothy Neufeld details below,\u00a0<\/a>no less than $65 trillion in unrecorded dollar debt circulates across the global financial system in non-U.S. banks and shadow banks<\/strong>. To put in perspective,\u00a0global GDP sits at\u00a0$104 trillion<\/a>.<\/strong><\/p>\n

This dollar debt is in the form of foreign-exchange swaps, which have exploded over the last decade due to years of monetary easing and ultra-low interest rates, as investors searched for higher yields. Today, unrecorded debt from these foreign-exchange swaps is worth more than double the dollar debt officially recorded on balance sheets across these institutions.<\/p>\n

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Based on analysis from the\u00a0Bank of International Settlements (BIS)<\/a>, the above infographic charts the rise in hidden dollar debt across non-U.S. financial institutions and examines the wider implications of its growth.<\/p>\n

Dollar Debt: A Beginners Guide<\/strong><\/p>\n

To start, we will briefly look at the role of foreign-exchange (forex) swaps in the global economy. The forex market is the largest in the world by a long stretch, with trillions traded daily.<\/p>\n

Some of the key players that use foreign-exchange swaps are:<\/p>\n