CrossBorder Capital liquidity index sees monthly slowdown

Liquidity in cross border capital flows fell for the second consecutive month, according to the latest CrossBorder Capital Global Liquidity Cycle index figures.

The index measures central bank interventions, cross border financial capital flows and private sector liquidity creation across some 80 countries globally.

According to the ‘GLI’ measure of total liquidity, the index fell to 47 from 48.5. Any reading below 50 indicates contraction in liquidity.

CrossBorder Capital says the fall was largely driven by a drop in private sector liquidity, particularly as it relates to developed markets.

The action of central banks is also crucial in liquidity creation. The suggestion that the US Federal Reserve is set to reduce banks’ reserves in the coming year is not beaing offset by suggestions of monetary easing at the Bank of Japan, People’s Bank of China and the ECB, CrossBorder Capital says.

Further details on the liquidity data are available at



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