ALWAGHT- Ghalibaf: Economic resistance key to weakening US influence, financial warfare main battleground against US.
On Saturday, Iran's Parliament Speaker Mohammad Bagher Ghalibaf reacted to recent statements by US Treasury Secretary Scott Bessent regarding currency-swap arrangements aimed at preventing the irregular liquidation of American assets. In a post on his X account, Ghalibaf wrote: "Swaps given ‘to prevent disorderly sale of US assets.’ Translation: some holders can’t sell. ICYDK: hidden single-digit % sale cap limits some institutional holders. Door closes if things escalate. Get out while open. Their frontline is the yield curve."
Ghalibaf noted that the reported measures indicate that some institutional holders of US bonds may face constraints in selling their holdings, referencing sensitivities within the US financial system surrounding large-scale bond sales and informal thresholds that state-linked or institutional investors reportedly observe. Under worsening market conditions, the ability of some investors to sell such assets could become further limited, Ghalibaf cautioned.
The speaker added that the United States is prioritizing stability in its bond markets, emphasizing that "their frontline is the yield curve." He also referenced a New York Times report detailing discussions within the US administration on providing financial support to allied economies through currency swap arrangements. According to the report, US Treasury Secretary Scott Bessent expressed support for extending such mechanisms to the United Arab Emirates (UAE) and some other countries affected by the US-Israeli war of aggression against Iran.
On Monday, The Wall Street Journal reported that the UAE had blamed US President Donald Trump for the economic fallout from the aggression against Iran. The report said the Arab country had initiated negotiations with the US regarding a potential financial safety net to protect its economy if the war on Iran deepens the crisis in the Persian Gulf.
