The Impact of Dollar Swaps on International Banking

This chapter explores how the Fed in New York utilized dollar swaps in 2008 to rescue European banks flooded with euro dollars, revealing a hierarchy of privileged access based on relations and systemic importance. It also delves into the evolving dynamics of China-US relations in terms of trade, monetary policies, and financial systems, emphasizing the vulnerability of countries borrowing in dollars like Ukraine post-2007 financial crisis.