The United Arab Emirates has begun talks with the US about a financial backstop in case the Iran war plunges the country into further crisis, the Wall Street Journal reported, citing US officials it didn’t identify.
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, according to the report.
The Emirati leaders said they have avoided the worst economic effects of the conflict but might still need a financial lifeline, the officials told the Journal.
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, according to the WSJ. Emirati officials haven’t formally requested a swap line, the Journal said.
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.
In an interview Sunday on ABC’s This Week, Reem Al Hashimy, the UAE’s minister of state for international cooperation, said the sheikhdom has been hit with more than 2,800 missiles and drones since the US-Israeli war with Iran began on Feb. 28.
The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.