The removal of long USD positions now forces all banks into either flat or short positions, reducing diversity in trading strategies. As a result, FX liquidity is likely to thin out, particularly during periods of elevated demand for dollars. However, this also diminishes an important revenue source for FX trading desks, which will need to shift focus from proprietary positioning to thin-margin client flows. Over time, this could make FX trading a less attractive business line for local banks, reducing competition and market dynamism. However, the medium-term risks include shallower market liquidity, wider spreads, and reduced competitiveness of local banks in FX intermediation.