Swaps allow China to go on offensive

PBOC is making available as much as $500 billion to other central banks

Just like the television, iPhone and American flags, central-bank international currency swaps are a US creation now made in China though only the swaps serve as a $500 billion State tool of economic and geopolitical power.

The Federal Reserve began foreign-exchange swap lines with allies including West Germany at the peak of the Cold War in 1962 to defend against losses from gold reserves, and in 2007 revived the program to fight the financial crisis.