Treasury Secretary Scott Bessent confirmed last week that several U.S. allies in the Gulf region and Asia have requested currency swap lines with the United States.
The war in Iran—now in its ninth week—has adversely affected economies, from energy shocks to currency volatility, prompting foreign exchange swaps to address dollar liquidity challenges.
While countries have been apprehensive to confirm reports, Bessent said swaps would be beneficial to Washington and nations that have asked for assistance.
“Swap lines, whether it’s from the Federal Reserve or the ​Treasury, are ​to maintain ⁠order in the dollar funding markets and to prevent the sale ​of the U.S. assets in a disorderly way,” ​Bessent ⁠told lawmakers at an April 22 Senate Appropriations subcommittee budget hearing….