The U.S. Federal Reserve is preparing to establish dollar swap lines with Middle Eastern nations, according to market analyst Quinten Francois.

Swap lines allow foreign central banks to access U.S. dollars by exchanging their own currency with the Fed, typically during periods of financial stress or liquidity shortages.

Francois characterizes the move as effectively expanding the money supply — a form of monetary easing that increases dollar liquidity in the global financial system.