US allies ask for help due to energy crisis, UAE may receive separate support
Kyiv • UNN
US partners in Asia and the Persian Gulf need dollar liquidity. The UAE may receive separate support to stabilize financial markets.
A number of US allies in the Persian Gulf and Asia have asked Washington for currency swap lines to stabilize financial markets amid the war in the Middle East. This was reported by Reuters with reference to the statement of US Treasury Secretary Scott Bessent, writes UNN.
Details
According to him, such mechanisms should help countries cope with the consequences of energy shocks and market instability. Bessent did not specify which states had made requests, but noted that they included both Persian Gulf countries and Asian partners of the United States.
He also confirmed that the possibility of opening a separate swap line is being considered for the United Arab Emirates.
A swap line would be beneficial for both the UAE and the US
Market stabilization and demand for the dollar
According to the minister, swap lines — both through the Federal Reserve and the Treasury Department — are aimed at supporting dollar liquidity and preventing sharp sales of American assets.
They are designed to maintain order in dollar funding markets and prevent disorderly sales of American assets
Sanctions relief and the oil market
Bessent also announced that the US had extended for 30 days the sanctions relief on Russian oil transported by sea. According to him, this decision was made after appeals from countries most dependent on oil supplies through the Strait of Hormuz.
This decision effectively reversed the previous position, according to which Washington did not plan to extend such exceptions.
According to the minister, thanks to these steps, about 250 million additional barrels of oil were brought to the market, which helped to curb prices.
If we had not eased sanctions, prices could have risen to $150 per barrel