Federal Reserve Chair Jerome Powell confirmed that the U.S. central bank will maintain its dollar swap lines program, which provides emergency dollar loans to other central banks during financial crises. Powell emphasized these swap lines have significantly contributed to global financial stability since the 2008 financial crisis.
While some worry the Trump administration might end this international cooperation tool, no action has been taken yet. The Bank of Korea’s governor noted that countries still need their own reserves since the Fed can’t address all local dollar shortages.
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