Potential downside risks to economic activity are trend changes in global financial markets, geopolitical developments, and considerable uncertainty over political developments, such as the outcome of negotiations on the United Kingdom's exit from the European Union (EU). The Chinese economy has continued to see stable growth on the whole, but some weakness has been observed in manufacturing firms.
The expanded use of the swap lines has helped to ease funding pressures on European and other foreign banks, lower tensions in U.S. money markets (in which foreign banks are major participants), alleviate pressures on foreign banks to reduce their lending in the United States, and boost confidence at a time of considerable strain in international financial markets.