Banks are not really currency issuers, rather they issue liquidity within their preset allowances. They give traders advanced reserves guarantees that they trade with others having liquidity.
The LIBOR scandal, major overnight money traders were fixing rates, and in doing so they became de facto currency issuers of the simoly variety, the standard S&L. Their daily price fixings was the absorption of matching error from the night before. The collection of senior traders count the necessary interest charged to cover last night's imbalance, an asynchronous system since they will not fix if there is no imbalance. .Works well, the libor became a stable unit of uncertainty for a variety of trading pits in banking, the whole banking algera as accurate as the LIBOR is asynchronously. adjusted.
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