swap line

English

Etymology

swap +‎ line (“of credit”)

Noun

swap line (plural swap lines)

  1. (banking) 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 alleviating a currency shortage.
    • 2025 July 31, Leah Downey, “What could a Trump appointee do at the Fed?”, in Financial Times, page 17:
      [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.

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