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G20 says 36 of 77 eligible countries have applied for debt relief

  
  Analysis
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Group of 20 major economies offered a suspension of official bilateral debt payments to77 eligible countries

  • 36 of the 77 have applied
The offer is to help countries combat the coronavirus pandemic and its economic impact.Saudi G20 secretariat said the debt relief initiative approved in April could provide immediate liquidity of $14 billion as more countries participated and that amount could increase significantly if additional creditors, including multilateral development banks and private-sector creditors, joined the initiative.
(info via Reuters )
Group of 20 major economies offered a suspension of official bilateral debt payments to77 eligible countries

Indonesia central bank says in discussion with Fed for possibility of swap, repo lines

  
  Analysis
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The dollar squeeze in emerging markets is where the problem is at

Indonesia is one of the EM countries where they have higher dollar-denominated debt than they do FX reserves. That is not a good spot to be in during this kind of market environment.

The swap lines offered by the Fed is good to address the needs by local banks on the receiving end as they start to run empty on dollars.
However, the true value of the Fed’s liquidity measures relies on how banks can also help get these dollars to corporates for their working capital requirements or cash buffers.

How effective is all of this remains to be seen but at least there is no reoccurrence of the dollar panic that we saw a few weeks back so that is something I guess.

Morgan Stanley fires four FX traders after concealing $100-$140m loss

  
  Analysis
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Traders may have mismarked emerging markets trades

Morgan Stanley has fired or placed on leave four FX traders suspected of mismarking trades linked to emerging market currencies, Bloomberg reports.
The New York and London-based traders are part of a probe into mismarked trades that concealed a loss of $100-$140 million and is related to options trades.
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