Dictionary

swap line en · NOUN

Etymology

swap + line (“of credit”)

Meanings

1. A procedure whereby a central bank (usually the United States Federal Reserve) trades money with a foreign bank in one currency in exchange for an equivalent amount of money in the foreign bank's domestic currency, for the purpose of alleviating a currency shortage.
   • [Donald Trump] could determine which countries have access to swap lines, and on what terms. Swap lines are the lifeblood of the entire global financial system. It's hard to imagine a greater source of leverage for the administration. 2025 July 31, Leah Downey, “What could a Trump appointee do at the Fed?”, in Financial Times, page 17:

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