The Covid crisis prompted an unprecedented global economic contraction. Although the worst is likely behind us, the recovery is likely to be uneven, with economic activity in many customer-facing service industries set to remain constrained for some time.
On the back of increased fragmentation and automation in the FX market, the use of execution algorithms (EAs) has been on the rise. Prepared by a Markets Committee study group, this report examines the role of EAs in the FX market.
As incomes shrink because of the Covid-19 shock, households must balance repaying debt with keeping up reasonable levels of consumption. In several countries, low- and middle-wealth households have insufficient liquid buffers to weather a long spell of unemployment without falling behind on debt repayments. The resilience of middle-wealth households is especially important: they hold relatively more (mortgage) debt and are more vulnerable in the countries that are more heavily exposed to the economic shock.