Meaning of swap line | Babel Free

Definitions

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.

Examples

“[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.”

CEFR level