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Pastimes : Ask Mohan about the Market

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To: Jack Clarke who wrote (9775)11/29/1997 4:51:00 PM
From: Rational  Read Replies (1) of 18056
 
It is possible (and perhaps the case) that Foreign CB's exchanged their US Treasury holdings at the Fed for US$ (cash) -- this is the injection of liquidity under the PACT of BOJ with Fed. The main point is that foreign CB's do not have to sell their US Treasuries in the open market.

Sankar
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