Treasury Secretary Scott Bessent on Friday defended the possibility of the U.S. participating in currency swaps with allies in the Persian Gulf and Asia who are seeking financial backstops due to the Iran war.
Discussions with those countries about U.S. dollar swap lines “are part of ongoing, routine conversations that @USTreasury has been having with our partners over a number of years,” Bessent said in an X post.
“They are a testament to the U.S. dollar’s primacy and the strength of America’s economic shield,” he said of the potential swaps.
The assertion of swap lines’ benefits and commonness comes as the Trump administration considers offering the financial lifeline to the United Arab Emirates, CNBC reported Tuesday.
It also comes two days after Bessent said that “many” allies in the Persian Gulf are seeking the same backstop as the ongoing war wreaks havoc on the oil-rich nations’ economies.
