Beyond neoliberalism? Bilateral central bank swaps and changing global financial governance
2025-06-02
Bilateral central bank swap agreements have become the most significant source of emergency liquidity since 2008. The US and China play a key role in the emergent swap networks. Does the rise of China and bilateral swaps signal the emergence of a post-neoliberal global financial order? Based on public texts, data, and interviews in Turkey—one of China’s swap partners—this article explores how the rise of swap lines has influenced the policy space of developing economies. This article shows that swap lines have enabled Turkey to evade IMF conditionality, at least for some time. Despite optimism in scholarship that the emergent policy space can be deployed for developmentalist goals that reverse decades of neoliberal restructuring, this article shows that it can also prolong authoritarian political regimes, deepening inequality and poverty. The paper discusses other dilemmas faced by China’s swap partners surrounding the potential limits of local currency swaps and their long-term sustainability.