Great note, thanks Daniel. Question please: are the USD "FX reserves" held as assets on the balance sheet of the CBR liabilities of US (and foreign) commercial banks, or are they liabilities of the US Fed? If the latter, what form do they take? They aren't the same "central bank reserves" that the Fed uses to settle interbank payments or manage QE, are they? Thanks.
Great note, thanks Daniel. Question please: are the USD "FX reserves" held as assets on the balance sheet of the CBR liabilities of US (and foreign) commercial banks, or are they liabilities of the US Fed? If the latter, what form do they take? They aren't the same "central bank reserves" that the Fed uses to settle interbank payments or manage QE, are they? Thanks.