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Illya Gerasymchuk
Financial & Software Engineer

💧FED swap lines = infinite liquidity pool

User Illya Gerasymchuk -

2025-06-29 13:43

💧FED swap lines = infinite liquidity pool

👉 here's how:

1️⃣ central banks exchange their foreign currency for USD, 7-80 days later, they reverse the exchange at the same rate + fee

2️⃣ central banks then lend these new USD to commercial banks

thus, USD demand is met

💧FED swap lines = infinite liquidity pool