Global liquidity is rising steadily and has reached a new all-time high of US$177.2tr, according to measures derived from the weekly balance sheets of the major Central Banks and collateral values. We had expected the current liquidity cycle to peak around Q4 this year.

Global liquidity, which I measure as global broad money supply of major currencies, translated into a dollar denomination, continues to be rangebound as well. The weaker dollar index has been supportive for global liquidity growth in recent months, but China’s flat money supply from March 2024 to the present has been a drag on global liquidity grow

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