Bessent: Gulf Allies Request Swap Lines; UAE, US Would Benefit From One

Treasury Secretary Scott Bessent said on Wednesday that both the United Arab Emirates and the U.S. would benefit from a currency swap line, and other Gulf allies have requested similar facilities.

Bessent ⁠did not name the countries making such requests, but told a ⁠U.S. 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 U.S.-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 U.S. assets in a disorderly way," Bessent said "So the swap line would benefit both the UAE and the U.S."