U.S. Dollar Funding Trend in the January-March Quarter of 2020 as Indicated by the BIS International Banking Statistics
November 25, 2020
TSUCHIYA Akitaka, NOJIMA Ayano, HORIKAWA Takumi, SEMBA Takashi, SHINOZAKI Kimiaki*
Financial Markets Department
- Currently at the Personnel and Corporate Affairs Department
In March 2020, amid the COVID-19 pandemic, the fund supply-demand balance for the U.S. dollar became tight globally, causing changes in U.S. dollar-denominated international fund transactions conducted by financial institutions. This article provides an overview of the trend in U.S. dollar-denominated international fund transactions conducted by Japanese financial institutions during this current phase as indicated by the BIS International Banking Statistics (IBS). Data available from the statistics highlighted the following two points: (1) that Japanese banks obtained U.S. dollars from the Bank of Japan (BOJ) through U.S. dollar funds-supplying operations and transferred them to U.S. branches via the inter-office account, and (2) that in the United States: in line with this flow of funds, claims vis-à-vis official sector, including reserve deposits with the U.S. Federal Reserve Bank (FRB), and loans to business corporations (drawdown of committed credit line) increased.
Bank of Japan Review is published by the Bank of Japan to explain recent economic and financial topics for a wide range of readers. This report, 2020-E-8, is a translation of the original Japanese version, 2020-J-12, published in September 2020. The views expressed in the Review are those of the authors and do not necessarily represent those of the Bank of Japan. If you have comments or questions, please contact Financial Markets Department (E-mail : firstname.lastname@example.org). Bank of Japan Review and Bank of Japan Working Paper can be obtained through the Bank of Japan's Web site (https://www.boj.or.jp/en).