UAE raises currency-swap idea with U.S. amid conflict risks
Emirati officials warned that they could be forced to use the Chinese yuan or other currencies for oil sales, a Qazinform News Agency correspondent reports.
The United Arab Emirates has initiated discussions with the United States on securing a financial backstop in the event of a deeper crisis amid tensions surrounding Iran.
UAE Central Bank Governor Khaled Mohamed Balama raised the idea of a currency-swap line with U.S. Treasury Secretary Scott Bessent, as well as with Treasury and Federal Reserve officials, during a visit to Washington, D.C., last week, The Wall Street Journal reported.
Emirati officials said they had so far avoided the worst economic effects of the conflict but might still require a financial lifeline.
The conflict has damaged the UAE’s oil and gas infrastructure and disrupted its ability to export oil through the Strait of Hormuz, depriving the country of a key source of dollar revenue. Officials also warned that if the UAE faces a dollar shortage, it may be forced to use the Chinese yuan or other currencies for oil sales and related transactions.
Earlier, Qazinform News Agency reported that Iran had rejected participation in a second round of peace talks with the United States.
