Both political and economic factors influence central banks’ decisions on whether to extend bilateral swap lines to partners in other countries, new research finds.

The International Monetary Fund working paper says drivers of the growth of the swaps network have been under-studied. Authors Jakree Koosakul and Alexei Miksjuk aim to address this gap in the literature using new data on all publicly documented swap lines.

The authors find a country is more likely to offer a bilateral swap line to a