Forex reversal trends have shifted higher as U.A.E. central banks pushed up the cost of borrowing by selling bonds to buy bonds, according to a report.
The U.K.-based Financial Times reports on Wednesday that the number of outstanding loans issued by U.N. member states has jumped by more than half since mid-March, as central banks try to prop up markets amid the global financial crisis.
The number of central bank debt issued by central banks rose to a record high of 2.1 trillion euros in the third quarter of 2018, up from a record low of 1.8 trillion euros a year ago, according the report.
The U: U.KS.
Bank is the latest major lender to raise its leverage as the world’s biggest economy is struggling with deflation and rising inflation.
Bank of America Merrill Lynch, HSBC and Barclays all have raised their borrowing costs, while the biggest U.F.:U.S.:BofA Merrill Lynch raised its borrowings by 3.5% in the fourth quarter, the largest increase since the third month of 2017, the bank said in a statement.
HSBC said its quarterly borrowing rose 2.5%.
“The global financial system is now in an exceptionally fragile state and has demonstrated the ability to weather extreme events and withstand shocks, both macroeconomic and financial,” said David Shillman, head of global economic research at HSBC.
“However, the resilience of financial markets and the ability of financial institutions to absorb shocks and recoup losses remains limited, even in an era of extraordinary volatility and uncertainty,” he added.