US Treasury Secretary: Gulf and Asian allies have requested a dollar swap line

On April 23, the United States was considering providing currency swap lines to the United Arab Emirates and other Gulf and Asian allies, whose development has been hit by Trump's war against Iran. U.S. Treasury Secretary Bessant said on Wednesday of this financial instrument that ensures access to the dollar and helps maintain financial stability: "Swap lines, whether from the Federal Reserve or the Treasury, are designed to maintain order in the dollar financing market and prevent U.S. assets from being sold off in a disorderly manner." Besent made the remarks during a hearing before the Senate Appropriations Committee. The day earlier, Trump confirmed reports that he was considering establishing a swap line with the United Arab Emirates. Besent said any such arrangement would benefit both the United Arab Emirates and the United States. He did not specify which other countries had made requests. United Arab Emirates Ambassador to Washington Youssef Otaiba said any suggestion that the United Arab Emirates needed external financial support misread the facts. A person familiar with the United Arab Emirates's thinking said the swap line was a "emergency measure." It's about building confidence and showing that the United Arab Emirates is among the most trusted economies like Japan and Europe, and the United States is putting the United Arab Emirates in this category.