"UAE Central Bank Governor Khaled Mohamed Balama raised the idea of a currency swap line with Federal Reserve and US Treasury officials during meetings in Washington last week."
"The discussions underscore UAE's growing anxiety that the war could harm its economy and position as an international financial center, draining foreign currency reserves and triggering capital flight."
"The war has inflicted damage on the UAE's energy infrastructure and blocked oil shipments through the Strait of Hormuz, cutting off a critical stream of dollar income."
"Reem Al Hashimy, the UAE's minister of state for international cooperation, stated that the sheikhdom has been hit with more than 2,800 missiles and drones since the US-Israeli war with Iran began."
The United Arab Emirates is in discussions with the US regarding a financial backstop due to concerns about the Iran war's potential economic impact. UAE Central Bank Governor Khaled Mohamed Balama proposed a currency swap line during meetings with US officials. Although Emirati leaders have managed to avoid severe economic fallout, they fear the conflict could drain foreign currency reserves and lead to capital flight. The war has already damaged UAE's energy infrastructure and disrupted oil shipments, affecting dollar income significantly.
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