Political setbacks can trigger investor flight, where investors sell sovereign bonds and local currency, contributing to currency depreciation and depletion of a country's foreign-exchange reserves.
October 14, 2025
high
general
Typical financial-market dynamics linking political confidence, capital flows, exchange rates, and reserve levels.
A currency swap line is a financial arrangement that allows a country to exchange its domestic currency for foreign currency (for example, U.S. dollars) to bolster foreign-exchange reserves and help stabilize its exchange rate.
October 14, 2025
high
general
Definition and typical purpose of currency swap lines between central banks or treasuries.