UAE in Talks for US Dollar Swap Line Amid Iran Conflict

The United Arab Emirates has initiated preliminary talks with United States officials to secure a potential currency swap line, aiming to bolster access to U.S. dollars amid escalating economic strains from the ongoing conflict with Iran. The discussions, held last week in Washington, highlight growing concerns in the Gulf state over disruptions to oil exports and financial liquidity, even as it maintains substantial economic reserves.

UAE Central Bank Governor Khaled Mohamed Balama raised the prospect of the swap line during meetings with U.S. Treasury Secretary Scott Bessent and senior officials from the Treasury and Federal Reserve. According to U.S. officials, Emirati representatives emphasized that the country has so far weathered the conflict's initial impacts but could face intensified pressures if hostilities persist. No formal request for the arrangement has been submitted, and the talks were described as precautionary measures to address potential liquidity shortfalls.

The conflict, which intensified after a U.S.-Israeli military operation against Iran on February 28, has targeted UAE energy infrastructure with more than 2,800 missiles and drones, according to Reem Al...