We use the Great British Pound in the UK.

ta20240528 · 2026-01-14T13:23:09 1768396989

So why then does the bank of England have and need the right* to print as many USD as they need, whenever they want.

If they only use sterling?

* - along five other central banks

throw0101d · 2026-01-14T13:28:38 1768397318

> So why then does the bank of England have and need the right* to print as many USD as they need, whenever they want.

The BoE does not even "print" the GBP (except paper/coins through the mint), never mind the USD. Money in the UK, like most countries, is created by banks through credit issuance (loans, mortgages):

* https://www.bankofengland.co.uk/explainers/how-is-money-crea...

ta20240528 · 2026-01-14T14:00:38 1768399238

[flagged]

throw0101d · 2026-01-14T14:32:06 1768401126

> Oh sweet summer child. Answered below.

Thank you for your condescension: it helped convince me the error of my ways…

> Actually I see its 14 central banks that have this USD FX swap facility (but the BoE, ECB, and BoJ are essentially uncapped).

* https://news.ycombinator.com/item?id=46616169

I am aware of swap lines, and how they were used in the GFC (2008/9) and COVID (2020/1):

* https://www.federalreserve.gov/monetarypolicy/central-bank-l...

* https://www.bankofcanada.ca/2023/03/coordinated-central-bank...

* https://en.wikipedia.org/wiki/Central_bank_liquidity_swap

Swapping ≠ printing.

And if the US wants to cut swap lines, thus making people more nervous about using and holding USD, thus reducing USD as a considered safe haven… ¯\_(ツ)_/¯

ta20240528 · 2026-01-14T16:47:24 1768409244

Yeah on second reading that was inappropriate. Mea culpa

But they do - in the most literal sense - just add integers to both sides of the ledger. And then go out and buy stuff with it.

pjc50 · 2026-01-14T13:25:49 1768397149

This is the first I've heard of this? Where's this legislated? Or is this misinterpreting contracted out physical printing services?

pastor_williams · 2026-01-14T13:26:45 1768397205

Quick search says it does not. What is your source for this claim?

ta20240528 · 2026-01-14T14:00:08 1768399208

I thought I would garner these comments above and the down-votes :) So as requested.

Actually I see its 14 central banks that have this USD FX swap facility (but the BoE, ECB, and BoJ are essentially uncapped).

My sources:

1. I did some early work in a very early precursor of this with Reuters

2. The Bank of International Settlements (BIS) https://www.bis.org/speeches/sp230324a.pdf

3. The Federal Reserve Banks (Richmond) https://www.richmondfed.org/publications/research/econ_focus...

How it works is:

The BoE needs USD, say $10 billion, so it SIMULTANEOUS conjures out of absolute thin air a single ledger entry:

- GBP ₤ 7,437,400,000 - liability to US FED

- USD $10,000,000,000 - asset to UK BoE

It then:

- lends the $10 billion to whoever needs it in the UK

- later (so not immediately*) lets the Fed know it has a new GBP asset.

It later promises to pay it all back. If it can.

But, be very clear, 14 central banks, can and do conjure up USD out of thin air. They call it something boring ("FX swaps").

The modern fiat monetary system is weird. (And I want to be a bank).

But to my earlier point - this print on demand, let us know later facility is only needed because of the demand for USD.

ndsipa_pomu · 2026-01-14T18:43:46 1768416226

I'm not aware of anywhere in the UK that can print US dollars legally. As far as I can tell, there's just two locations that can print legal US dollars - Washington, D.C. and Fort Worth, Texas.

GJim · 2026-01-14T13:32:28 1768397548

Probably Grok AI :-)

ta20240528 · 2026-01-14T16:48:56 1768409336

No need for that here.