London Bankers Say FX Liquidity Deteriorating As Choppy Markets, Credit Crunch Take Toll
BANKS
Bank treasury executives in London say liquidity in the foreign exchange market has deteriorated markedly in the past six months and see little improvement in sight. Most say the drought is the result of a reduction in the number of banks making prices in the interbank market, a change that may prove lasting.
"Market conditions have become progressively more illiquid all through the past year," says John Baker, foreign exchange director at Commerzbank in London. "A few players in the market have
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