Bessent defends U.S. dollar swap lines as Iran war harms global finances

treasury secretary scott bessent defended u.s. dollar swap lines on friday, calling them routine and a sign of the dollar's strength. the trump administration is considering offering one to the united arab emirates, cnbc reported tuesday. bessent said "many" persian gulf allies are seeking the same backstop as the iran war disrupts their economies. swap lines let two central banks exchange currencies and swap them back later. the u.s. has standing arrangements with canada, england, japan, switzerland and the ecb. the tool dates to the 1960s and was used after 9/11, during the 2008 crisis and at the start of covid. political risk exists for trump. 60% of respondents in a cnbc all-america survey disapprove of his economic handling. a swap line could look like a bailout of a rich country like the uae. trump told cnbc's "squawk box" he'd be "there for them" if they had a problem.