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State Banks Cut FX Risks As Orthodox Policy Push Gains Steam

  • State banks cut the gap between their foreign-currency assets and offshore liabilities in a fresh signal that govt will follow through on pledges to reverse unorthodox policies that caused lenders to take on too much risk.
  • Shortfall has narrowed to below $1bn (lowest since Dec 2019) vs $12.2bn in Aug, exceeding regulatory thresholds.
  • Overall, should majorly reduce FX risks to local banks.
MNI London Bureau | +44 020-3983-7894 |
MNI London Bureau | +44 020-3983-7894 |

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