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Deutsche Bank: USD Status Faces Major Risk if Fed Withdraws Currency Swap Arrangements
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George Saravelos, head of foreign exchange research at Deutsche Bank, stated that if the Federal Reserve were to withdraw its currency swap arrangements, it would represent the greatest risk to the U.S. dollar’s status as a reserve currency since World War II. Previous report indicated that the European Central Bank and regulatory officials had informally discussed the possibility of the U.S. government pressuring the Fed to exit global funding markets during times of market stress. Saravelos noted that even if the Fed does not act, concerns over the reliability of currency swap arrangements could still jeopardize the greenback, potentially becoming the most significant driver of global de-dollarization since World War II. AAStocks Financial News |
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