Swap lines as geopolitical infrastructure

The article argues that swap lines—agreements between central banks to exchange currencies—function as geopolitical infrastructure. These arrangements, often established during financial crises, serve not only economic stability but also strategic geopolitical purposes. The piece highlights how major central banks, particularly the Federal Reserve, use swap lines to extend influence and secure alliances. The analysis suggests that access to dollar liquidity through swap lines reinforces the US dollar's dominance and provides Washington with leverage over other nations. The article is behind a paywall on the Financial Times website.