A cross currency swap does not make it one.
A swap can incur additional risk. For example a currency swap carries exchange rate and credit risk. But this is not the point.
In the case of QE2, the "printed money", as some call it, which it is not, is piled up as excessive bank reserves, sitting in the Fed doing nothing. Yes banks are holding on their reserves. Banks have nowhere to lend the money, and are earning interests from the Fed. It is important to see and understand the total amount of liquidity has not changed before and after a QE2 operation. And at least no one can say QE2 is swapping good money for bad assets because the “assets” are U. S. treasury bonds.
