http://useconomy.about.com/od/glossary/g/swap_line.htm
The expansion of swap lines is the arrangements of money and loans between central banks. Central banks are banks that can lend money to other federal banks all around the world when they need it. Buisnesses and banks around the world have liabilities not only in their home currency, but also in international currency. Thus, banks in England need funding in the U.S. dollars as well as pounds. If we didnt have central banks all around the world, we wouldnt have anything. The expansion of swap lines is the main currency arrangement between the central banks.
The expansion of swap lines is the arrangements of money and loans between central banks. Central banks are banks that can lend money to other federal banks all around the world when they need it. Buisnesses and banks around the world have liabilities not only in their home currency, but also in international currency. Thus, banks in England need funding in the U.S. dollars as well as pounds. If we didnt have central banks all around the world, we wouldnt have anything. The expansion of swap lines is the main currency arrangement between the central banks.
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