WASHINGTON: US Treasury Secretary Scott Bessent said on Wednesday that both the United Arab Emirates and the US would benefit from a currency swap lines, and other Gulf allies have requested similar facilities.
Bessent did not name the countries making such requests, but told a US Senate Appropriations subcommittee budget hearing that such facilities would help stabilize financial markets amid turmoil from the Middle East war. President Donald Trump on Tuesday said that a US-UAE swap line was under consideration.
“And 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 US assets in a disorderly way,” Bessent said “So, the swap line would both benefit both the UAE and the US”.
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