They refer to this relationship between domestic and global financial conditions as the “risk-taking channel of [local] currency appreciation”. For empirical evidence, see: Kearns, J. and Patel, N. (2016), "Does the Financial Channel of Exchange Rates Offset the Trade Channel?
", BIS Quarterly Review; Hofmann, B. and Peersman, G. (2017), “Monetary Policy Transmission and Trade-offs in the United States: Old and New”, BIS Working Paper, No 649; and Avdjiev, S., Koch, C., McGuire, P. and von Peter, G. (2018), “Transmission of monetary policy through global banks: whose policy matters?,” Journal of International Money and Finance, vol. 89, pp. 67-82.