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Central bank liquidity swap lines, established by the Federal Reserve, are crucial facilities created to support the economy during the coronavirus pandemic. Initially utilized during the 2008 financial crisis, they have now been expanded to include more countries. Swap lines function as arrangements between the Fed and foreign central banks, allowing for the exchange of currencies to maintain liquidity. This is essential in today’s global economy, where international bank funding markets can influence credit availability. When these markets face difficulties, it can disrupt credit provision to U.S. households and businesses. The Fed aims to maintain U.S. dollar funding market stability, both domestically and internationally, to alleviate financial strain.