U.S. Treasury Secretary: Gulf and Asian allies have requested the establishment of dollar swap lines

Gold Financial reports that on April 23, the United States is considering providing currency swap facilities to the United Arab Emirates and other Gulf and Asian allies, as these economies have been affected by Trump’s impact regarding the Iran war. U.S. Treasury Secretary Bessent said on Wednesday, when discussing such a financial tool that ensures access to U.S. dollars and helps maintain financial stability, “Whether it’s swap facilities from the Federal Reserve or the Treasury Department, they are all aimed at maintaining order in the U.S. dollar funding markets and preventing U.S. assets from being sold off in an orderly fashion.” Bessent made the remarks at a hearing of the Senate Appropriations Committee. The day before, Trump confirmed reports that the U.S. was considering establishing swap facilities with the UAE. Bessent said that any such arrangement would benefit both the UAE and the United States. He did not specify which other countries had made requests. Youssef Otaiba, the UAE ambassador to Washington, said that any suggestion that the UAE needs external fiscal support is a misreading of the facts. A person familiar with the UAE’s thinking said that swap facilities are a “contingency measure.” This is about building confidence and showing that the UAE is one of the most trusted economies, like Japan and Europe, and that the U.S. is placing the UAE in this category.