US Treasury chief says dollar swap talks with Gulf, Asian allies ‘routine’

US Treasury Secretary Scott Bessent said Friday that discussions with Gulf and Asian allies on potential US dollar swap lines are part of “ongoing, routine conversations.”

In a post on the US social media company X, Bessent said such talks have been held “over a number of years,” describing them as a “testament to the US dollar’s primacy and the strength of America’s economic shield.”

Bessent added that many partner countries have “pristine sovereign balance sheets” and large dollar reserves and are exploring additional financial buffers as a precaution during stable market periods.

“Extending permanent swap lines can be a major first step in creating new US dollar funding centers in the Gulf and Asia,” he said.

“Dollar dominance and reserve currency status are strengthened by constant long-term initiatives, including countering the growth of problematic, alternative payment systems,” he added.

His remarks follow reports that several countries in the Gulf and Asia have sought dollar backstops from Washington amid heightened demand for the currency and regional economic uncertainty since the US-Israel attacked Iran.