It's all about the cross-currency basis swap spreads - ConsultFX

It's all about the cross-currency basis swap spreads

Fresh warnings on US dollar scarcity The problem for non-US banks is simple. The regulations are tighter than ever and mean they need to hold funding currencies. The problem is that the US dollar remains the dominant funding currency and they can't always get access in crunch time, because they can't borrow directly from the Federal Copyright 2015 Forexlive.com