US Treasury Secretary Bensen: Several oil-producing countries have requested a dollar swap arrangement to address liquidity shocks.

U.S. Treasury Secretary Benson stated on Wednesday that due to the economic turbulence caused by the Iran conflict, several Gulf and Asian oil-producing allies have requested currency swap arrangements from the United States to obtain dollar liquidity support. Benson said, "Many Gulf allies have requested swap limits." This statement goes further than the information previously disclosed by the White House. The White House only confirmed on Tuesday that discussions were underway with the United Arab Emirates on related issues. According to Benson, the proposed currency swap arrangements are aimed at providing dollar liquidity support to the countries concerned. Earlier, the closure of the Strait of Hormuz and missile attacks on economic infrastructure had already impacted the region's energy export revenues. He stated that the purpose of establishing swap mechanisms is to "maintain order in the dollar funding market and prevent disorderly sales of U.S. assets." He also revealed that, in addition to Gulf countries, "many countries including some Asian allies" have also made similar requests. Currency swap limits are generally seen by the market as an important tool for the United States to provide dollar funding support to allies during financial stress periods, helping stabilize exchange rates, alleviate capital outflows, and maintain global dollar liquidity. U.S. President Trump expressed support for the arrangement. He said in an interview, "If I can help them, I will do it." Republican Senator Steve Daines from Montana also expressed support, saying that Benson is "moving in the right direction." However, the plan faces opposition domestically in the United States. Democratic Senator Chris Van Hollen questioned whether introducing the arrangement amidst rising domestic costs was appropriate. Van Hollen stated at a hearing that the Iran conflict has cost the United States dearly, with "taxpayers paying over $1 billion a day, facing rising gas prices and overall inflation pressures." Analysts point out that if the United States expands currency swap arrangements with allies, it could mean that geopolitical conflicts are starting to transmit to global financial stability. Especially against the backdrop of pressure on energy revenues and increased capital flow volatility, the importance of dollar liquidity support mechanisms is on the rise.