05 Jun 2020

Global Currencies During a Crisis

Swap Line Use Reveals the Crucial Ones


The current crisis has confirmed the importance of the currency swap lines offered by the Federal Reserve. They enhance the role of the USD as the dominant global currency. However, one should not expect much impact on the international role of the euro if the ECB offers similar currency swap lines. Currency competition is not won by competing on the generosity of currency swap lines.

This briefing was prepared by CEPS researchers at the request of the European Parliament’s Committee on Economic and Monetary Affairs for the Monetary Dialogue of June 2020. Publication here is with the kind permission of the Policy Department for Economic, Scientific and Quality of Life Policies of the European Parliament.