BIS Report Warns of August Market Panic Risks from Yen Carry Trade Unwinding, Says Hyun Song Shin

A recent report from the Bank for International Settlements (BIS) highlights the risks posed by the partial unwinding of the yen carry trade, which has led to heightened market volatility. The report indicates that while markets managed to avoid a complete collapse at the beginning of August, the underlying structural issues that contribute to such market episodes require ongoing scrutiny. Economists from BIS have described current market conditions as 'hyper-sensitive,' suggesting that these dynamics could threaten overall financial stability. Hyun Song Shin, a key figure at BIS, has emphasized the lessons learned from the recent market disturbances related to the yen carry trade.