Deutsche Bank: Concerns over the Federal Reserve's reduction of currency swap limits may threaten the status of the dollar.

On March 28, Jin10 reported that the head of forex research at Deutsche Bank, Sarah Velos, stated that sources indicated this week that the European Central Bank and regulators have had informal discussions about the possibility of the Trump administration pushing the Federal Reserve to exit the global financing market during times of market pressure. There are no signs that the Trump administration wishes the Federal Reserve to reduce the currency swap lines provided during past crises. However, these discussions in Europe have raised concerns just as the U.S. begins to “distance” itself from its European allies. Even if the Federal Reserve does not take action, any concerns regarding the reliability of swap lines could damage the dollar’s standing. If such concerns are widespread among America’s Western allies, it could create the most significant impetus for global de-dollarization since the establishment of the global financial framework after World War II.