Unannounced, quantitative easing has started last week in the USA.
The Federal Reserve is flooding banks with reserves, most of which is not required.
Excess reserves no stand at US$ 550 bln !!
It is expected the wind-down of Supplementary Financing Program means that excess reserves will rise further over the next couple of months.
How about the US Dollar currencies and Interest rates and is the US Dollar the new carry trade ?
The chart below is shown the difference in required reserves and the excess reserves.
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