The ECB would then be called on to increase its activities as an international lender of last resort. Any extension of the global network of currency swap lines would, however, have to be based on sound monetary arguments. Central banks are mindful of global financial stability, but they always act in full discretion and within domestic mandates.
Continued partial and adhoc applications of IF-system relative to what it offers theoretically will hinder the effective development of IF system and over the period carries the risks of eroding confidence in the system.