This article is a bit dated ( Armstrong posted this back in April), but it does shed some light as far as money flows and what sovereign countries may be doing to guarantee money flows for the good of their own countries…….
The key point people miss, because this is not about whether a country is rich, it is about whether it has access to dollars when the system comes under stress. This is precisely what I have always explained about currency swaps, because they are not favors or political gestures, they are lifelines, and when a country fears losing dollar inflows, especially one tied to oil exports through a chokepoint like the Strait of Hormuz, it must secure liquidity or risk instability in its currency, its banking system, and ultimately its entire economy.
This is also where many misunderstand de-dollarization. The world is not abandoning the dollar. It is trying to create options as nations want flexibility as geopolitical risks rise. Currency swaps are central to that process because they determine access to liquidity.
