Swap Lines Explained: How the US Extends Dollar Power Globally - Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world Americas+1 212 318 2000 EMEA+44 20 7330 7500 Asia Pacific+65 6212 1000 Kavish Translate When President Donald Trump disclosed in April that the US was considering offering the United Arab Emirates financial support through a currency swap line, observers in financial and policy circles were puzzled. Why would the UAE, one of the world’s wealthiest countries, suddenly need economic assistance? Were the discussions connected to the Iran war? Would a deal also benefit the US? And, for those unfamiliar with the esoteric financial tool, what in the world is a swap line? Listen to the Here’s Why podcast on Apple, Spotify or anywhere you listen. Swap lines provide other nations access to dollars in times of economic stress. The instruments rose to prominence during the global financial crisis but have

saved by

• Kavish Garg