EFTA01387376.pdf

looking to stop doing this, but for that to happen USDILS needs to stop moving lower. That's why I don't think they can be the trigger, but if USDILS starts moving higher, they will reassess their hedging strategy and hedge less of the FX exposure (As this is expensive for them) — that could accelerate the move higher in USDILS. Figure 5: Transactions in foreign exchange assets vis-a•vis change in NiStfore gn currency derivatives' (S billion, transactions conducted during the period) 2.5 22 to 1.3 1.0 C 0.6 to .0.S -1.0 I4.5 .0° ;lb e A l *A-10tat Wane* fl ogmints n fasten snooty 4 Inekceir Ow 0.04 An. postuon tundh, 0* socas770 In 0777coure is tie4oreign curnbncy dadvaeves Ofowinw Ina irroo•NACirplivf..01. the ssealw.44 —total trartium7100, in Seep fixelsong• 0nduding Sava.) Cargo/thew)* eat ''pcolit awing' ienseweiurpoisows 2m 25d skew Is elevated CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0089870 CONFIDENTIAL SDNY_GM_00236054 EFTA01387376