Loading ...Gold miners- The Importance of a Dollar SWAP Line
I learned the hard way:
This is important when investing in gold miners.
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The Importance of Dollar SWAP Lines
This means mining assets in +SWAP Line Nations won’t nationalize their gold mines, copper mines etc. Those nations won’t screw with America.
Nations with existing U.S. SWAP lines won’t put Forex (FX) restrictions on the foreign (American) companies operating there. –SWAP Line nations may do so, and many have already.
This will cause less and in some cases prevent those U.S. dollars in –SWAP lines from being sent back home as dividends to the owners of the company.
Basically, the SWAP lines are monetary lifelines to ease the need for U.S. dollars in their own economies.