Therefore, if an additional supply of current account balance results in a change in the prices of financial assets, it could be achieved either through a) reallocation of money from no-risk-no-return current accounts to higher-return-higher-risk assets, or b) effects on inflation expectation for the future. Such effects through these routes could exist at least theoretically and qualitatively.
In response, banks have turned to foreign exchange swap markets to source US dollars, pushing up the cost significantly (Graph 9). Graph 9  To alleviate the shortage of US dollar funds among European banks, the US Federal Reserve has re-activated its US dollar swap lines with a number of other central banks.