Treasury Secretary Scott Bessent said on Wednesday that he backed the idea of providing economic support in the form of a currency swap to the United Arab Emirates, an oil-rich ally that has been contending with economic fallout from the war in Iran.
Speaking at a Senate hearing, Mr. Bessent said that the Emirates, along with several other countries in the Persian Gulf and Asia, had inquired about the possibility of a swap. He said such a maneuver would prevent the disorderly sale of U.S. assets as nations look to secure access to dollars. The war in Iran has damaged oil and gas infrastructure throughout the Middle East, dealing a blow to economies such as the Emirates that rely on the Strait of Hormuz to transport crude around the world.
The Treasury secretary said that providing a currency swap to the Emirates could benefit the United States by stabilizing foreign exchange markets and protecting American assets around the world. He added that it could be provided by the Federal Reserve or by the Treasury Department, which can deploy its Exchange Stabilization Fund to buy another nation’s currency.
“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,” Mr. Bessent said. “The swap line would both benefit the U.A.E. and the U.S.” » | Alan Rappeport | Reporting from Washington | Wednesday, April 22, 2026
This is astonishing indeed! No money can be found to help hard-pressed Americans, but billions can be found to help an oil-rich nation. It is more especially astonishing given the fact that the USA is on its uppers and this illegal war, in addition, is costing billions per week. Trump and his chums in the regime appear to have very queer priorities. Of course, if this illegal war had not been started, the UAE’s economy wouldn’t be suffering today. That the country now needs help is only because of Trump’s illegal and unnecessary war on Iran. It’s a war that should never have been started and waged. — © Mark Alexander
