US eyes dollar swap backstops as Iran war tests global finance
Treasury Secretary Scott Bessent defended ongoing discussions about U.S. dollar liquidity swap lines with Gulf and Asian allies amid market stress from the Iran war, describing them as routine steps to reinforce the dollar’s primacy and stabilize global funding. The swaps could involve both traditional Fed facilities and the Exchange Stabilization Fund, with potential UAE involvement under consideration, though critics worry they could be seen as a bailout and fuel inflation concerns at home.