War news july, 2020
SWAP LINES OF CREDIT, THEY ARE NOT PAYING THEM BACK, THEY ARE JUST EXTENDING OR REVOLVING THESE "ENDLESS LINES OF CREDIT" BY KIMBERLY AMADEO Updated June 08, 2020 Swap lines are agreements between central banks to exchange their country's currencies to one another. They keep a supply of currency available to trade with the other central bank at the going exchange rate. Banks use swap lines for overnight and short-term lending only. Most agreements are bilateral , which means they are only between two countries' banks. What Is a Swap Line? Swap lines are arrangements between two central banks to keep currency available for their member banks in the reciprocal countries. 1 These agreements stabilize markets when they become stressed. They reassure banks that there won't be a run on a specific currency that they won't be able to meet. Swap lines keep plenty of currency available during times of stress. How It Works For example, the...