Loading ...“Apparently, the Trump administration—together with the Federal Reserve—has frozen existing dollar swap lines with the Eurozone. These swaps are liquidity arrangements between central banks in U.S. dollars. Eurozone banks can no longer access emergency dollar liquidity when shortages arise.”
“Much of the EU’s foreign trade depends on access to the reserve currency. If this tap runs dry, supply chains could rupture, and transatlantic trade may partially grind to a halt. One thing is clear: with this financial lever, Donald Trump and the United States wield a geopolitical weapon of considerable force.”
So, I’m puzzled as to how EU countries are supposed to buy US goods as demanded, if they aren’t able to borrow USD or obtain USD through swaps?
https://www.zerohedge.com/markets/us-withdrawal-ecb-warns-dollar-shortage