UAE warns of shift to yuan amid dollar shortages

The United Arab Emirates has initiated negotiations with the US regarding a potential financial safety net to protect its economy if the ongoing aggression on Iran deepens the crisis in the Persian Gulf, The Wall Street Journal reported on Monday, citing US officials, Press TV reported.
UAE Central Bank Governor Khaled Mohamed Balama raised the idea of establishing a currency-swap line during meetings in Washington last week with Treasury Secretary Scott Bessent as well as officials from the US Treasury and the Federal Reserve.
US officials said the Emirati side presented the proposal as a precautionary measure, noting that while the country has thus far avoided the most severe economic consequences of the US-Israeli aggression against Iran, it may still require financial support if conditions deteriorate.
The negotiations reflect growing concern in the UAE that the US-Israeli aggression against Iran could significantly harm its economy and undermine its status as a global financial hub.
The US-Israeli aggression against Iran has already damaged Emirati oil and gas infrastructure and disrupted tanker traffic through the Strait of Hormuz, cutting off a crucial stream of dollar-denominated oil revenues.
US officials also said Emirati representatives indicated that Trump’s decision to attack Iran had drawn their country deeper into the conflict, creating economic risks whose impact may not yet be fully known.
MNA