In Europe, the situation in Ukraine has continued to have an impact. The Chinese economy has recovered from being pushed down as the impact of lockdowns implemented around spring 2022, such as in Shanghai, has generally dissipated.
The availability of local currency funding differs across countries, depending on the stage of development of money markets and of funding tools using collateral. The Bank of Japan has agreed on cross-border collateral arrangements with other Asian central banks as one of the backstops for developing financial markets in this region (Chart 3).