US Explores Expanded Dollar Swap Lines with Gulf, Asian Partners
In a message shared on the US-based social media platform X, Bessent explained that these dialogues have taken place “over a number of years,” characterizing them as a “testament to the US dollar’s primacy and the strength of America’s economic shield.”
He further noted that numerous allied nations possess “pristine sovereign balance sheets” along with substantial dollar holdings, and are considering extra financial safeguards as a preventive measure during periods of market stability.
“Extending permanent swap lines can be a major first step in creating new US dollar funding centers in the Gulf and Asia,” he said.
He also emphasized, “Dollar dominance and reserve currency status are strengthened by constant long-term initiatives, including countering the growth of problematic, alternative payment systems.”
His comments come after reports indicated that multiple countries across the Gulf and Asia have pursued dollar support mechanisms from Washington amid increased demand for the currency and regional financial instability following the US-Israel attack on Iran.
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