The United Arab Emirates has begun talks with the United States about financial backing in case the Iran war plunges the country into another crisis, the Wall Street Journal reported, citing U.S. officials it did not name.
According to the report, UAE Central Bank Governor Khaled Mohamed Balama raised the idea of a currency swap line with Federal Reserve and US Treasury officials, including Treasury Secretary Scott Bessent, during meetings in Washington last week.
Emirati leaders said they had avoided the worst economic fallout from the conflict but may still need a financial lifeline, the officials told the Journal.
The discussions underscore the UAE’s growing concern that the war could damage its economy and its position as an international financial center, deplete foreign reserves and trigger capital flight, the WSJ said. Emirati officials have not made a formal request for an exchange line, the Journal said.
The war has damaged the UAE’s energy infrastructure and blocked oil shipments through the Strait of Hormuz, cutting off a key stream of dollar revenue.
In an interview on Sunday on ABC This weekReem Al Hashimy, the UAE’s minister of state for international cooperation, said the sheikhdom had been hit with more than 2,800 missiles and drones since the US-Israeli war with Iran began on February 28.
