In the aggregate, fed funds are an important indicator of liquidity in the banking system and, by implication, the money supply. All fed funds loans are for a single day, and the interest rate is reestablished daily. Fed funds rates thus are an excellent barometer of both the price of money and the changes in the money supply.
DRs are issued in countries such as India, Taiwan, Hong  2  BIS central bankers’ speeches  Kong and South Korea. There is already a depository bank with local operations (Citibank) that can facilitate the process. However, the challenge would lie in the negotiations with the multinationals – convincing them of the advantages of issuing DRs.