In this paper, I develop a two-country general equilibrium model with financial frictions to study the global consequences of quantitative easing (QE) and foreign exchange reserve accumulation. In the model, the key financial frictions are limited commitment and differential pledgeability of collateral, and due to these frictions, the scarcity of collateralizable assets matters. Financial intermediaries have differential and asymmetric pledgeability of assets as collateral and acquire different asset portfolios depending on their home country. QE can reduce long-term bond yields and term premia internationally and depreciate the relatively high-collateral-scarcity currency. Foreign reserve accumulation always depreciates the local currency, but it improves welfare globally if implemented by the high-collateral-scarcity country.