Visualizing $65 Trillion In Hidden Dollar Debt

1.12.23 - Visualizing $65 Trillion In Hidden Dollar Debt

Gold last traded at $1,896 an ounce. Silver at $23.77 an ounce.

 - ZeroHedge--The scale of hidden dollar debt around the world is huge.

As Visual Capitalist's Dorothy Neufeld details below, no less than $65 trillion in unrecorded dollar debt circulates across the global financial system in non-U.S. banks and shadow banks. To put in perspective, global GDP sits at $104 trillion.

This dollar debt is in the form of foreign-exchange swaps, which have exploded over the last decade due to years of monetary easing and ultra-low interest rates, as investors searched for higher yields. Today, unrecorded debt from these foreign-exchange swaps is worth more than double the dollar debt officially recorded on balance sheets across these institutions.

Based on analysis from the Bank of International Settlements (BIS), the above {click on image to expand} infographic charts the rise in hidden dollar debt across non-U.S. financial institutions and examines the wider implications of its growth.

Dollar Debt: A Beginners Guide

Look at the role of foreign-exchange (forex) swaps in the global economy. The forex market is the largest in the world by a long stretch, with trillions traded daily.