BNP Paribas Says It Has ‘Excess’ of Dollar Short-Term Liquidity
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BNP Paribas SA, France’s largest bank, said it has “an excess of short-term liquidity” in U.S. dollars and that the company has to deposit the extra funds at the U.S. Federal Reserve.
“It is an additional clue of how much jammed the interbank market is,” said Christophe Nijdam, a Paris-based analyst at AlphaValue. “There is no obligation to deposit excess U.S. dollar funds at the Fed as far as I know. It could be deposited with other banks.”