BIS warns of $13 trillion hidden debt hole

Trillions of dollars of FX derivatives are not being accounted for when calculating the level of debt in the global economy

Dollars down a black hole
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The Bank for International Settlements (BIS) has estimated some $13 trillion of debt is currently being under-reported in the global economy due to accounting practices that exclude foreign exchange derivatives from the balance sheets of financial and non-financial institutions.

The figures are the result of research by Claudio Borio, head of the BIS’s monetary and economic department, Robert McCauley, a senior adviser, and Patrick McGuire, head of the BIS international data hub. It was

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