Dhaka, Bangladesh (BBN) - As the Middle East conflict disrupts energy flows and unsettles global financial systems, the US is once again deploying dollar liquidity tools to maintain market stability.
US Treasury Secretary Scott Bessent told a Senate committee that several US allies in the Gulf and Asia have requested dollar liquidity support through currency swap line arrangements. These mechanisms are designed to stabilise dollar funding markets and prevent disorderly sell-offs of US assets.
A proposed swap line with the United Arab Emirates is expected to benefit both economies, he noted—echoing remarks by Donald Trump, who recently confirmed such an arrangement is under consideration, according to media reports.
Why this matters:
* Ensuring dollar liquidity has become critical amid rising global uncertainty.
* Energy disruptions—especially around the Strait of Hormuz—are intensifying financial stress.
* Temporary US sanctions relief on Russian and Iranian oil has helped ease supply pressures.
Bessent added that these measures have effectively released around 250 million barrels of oil into the market. Without them, benchmark prices could have surged to $150 per barrel.
Big picture:
Dollar swap lines are reasserting their role as a key crisis-management tool—much like during the 2008 financial crisis—offering not just liquidity support, but also a buffer against geopolitical shocks in an increasingly fragile global economy.
BBN/SSR/AD