Dear friends and colleagues:
The CFR Central Bank Currency Swaps Tracker has been upgraded and updated.
Swaps are once again exposing hidden stresses in sovereign financial positions. The UAE, whose foreign reserves have been hit by the Iran War, has opened talks in Washington to secure a swap line. The Fed, which is abstemious in granting such lines, is unlikely to approve the request, putting pressure on the Treasury to step in—as it did last year for Argentina. The People’s Bank of China, in wholesale contrast to the Fed, has enthusiastically positioned itself as an international lender of last resort. Outstanding PBoC swaps are at a record $4.3 billion, compared with $0 for the Fed.
Explore our tracker to learn more about how geopolitical shocks have reshaped the global financial safety net.
Yours, |
