Bye-Bye Dollars

Here's some news that confirms Jeffery Snider's take on eurodollars and their dearth in global markets.

The Baltic Course: Deutsche Bank stops providing dollar clearing service in Estonia
Germany's leading bank, Deutsche Bank, has decided to suspend correspondent banking services to Estonian banks and is cutting off access to dollar-clearing facilities for them, while previously it had announced it would do the same with Latvian banks, writes LETA/BNS.

"Deutsche Bank's policy regarding Estonia and Latvia does not differ," a member of Versobank, Margus Normak, told on Monday evening. According to Normak, even if one big provider disappears, Versobank will continue offering dollar payments through other correspondent banks.

After Deutsche Bank decided not to offer the service anymore, making dollar payments has become more uncomfortable because there is now no very large contra agent that is able to deliver payments everywhere, Normak said. "Price changes will come later," he added.

...Making U.S. dollar payments in Estonia and Latvia may become extremely difficult if Deutsche Bank should stop handling dollar settlements here, Aivar Paul, head of prevention of money laundering at LHV Pank, said then. "It will definitely not happen at the same price, it will definitely not happen as quickly, and I'm not ruling out that it will not be possible to conduct all transactions then," he added.

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