US Treasury Secretary Scott Bessent has revealed that several Gulf allied countries have formally requested access to currency swap facilities, marking a significant development in financial cooperation.
According to US media reports, he made this statement during a Senate hearing, noting that the United Arab Emirates is also among the countries seeking this facility to help ensure financial stability.
Scott Bessent explained that the primary objective of currency swap arrangements is to prevent disorderly and excessive selling of allied countries’ assets in the United States, thereby maintaining market stability.
He further stated that under such agreements, the United States provides temporary dollar liquidity to the requesting country, enabling it to meet its financial needs.
The US Treasury Secretary added that in exchange, the United States receives the local currency of that country, helping maintain balance and stability in the overall financial system.
