Source: Fortune
Summary
The United Arab Emirates (UAE) has initiated discussions with the US about a potential financial backstop in case the ongoing Iran war severely impacts the country’s economy. UAE Central Bank Governor Khaled Mohamed Balama met with US officials, including Treasury Secretary Scott Bessent, to discuss a possible currency swap line. Emirati leaders have expressed concern that the war could harm their economy and position as an international financial center. The UAE has already suffered damage to its energy infrastructure and lost dollar income due to blocked oil shipments. The country has been hit with over 2,800 missiles and drones since the conflict began on February 28.
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The strategy enters a familiar phase.
The UAE is seeking a financial lifeline from the US, a move that signals growing anxiety about the war’s economic impact. The central bank governor’s meeting with US officials, including the Treasury Secretary, suggests a proactive approach to mitigate potential damage. The UAE’s concerns about its economy and foreign currency reserves are valid, given the conflict’s disruption of oil shipments. The country’s infrastructure has already suffered, and capital flight is a real concern. The UAE’s minister of state for international cooperation, Reem Al Hashimy, noted that the country has been hit with over 2,800 missiles and drones since the conflict began.
The UAE is essentially asking: what’s the plan if things get worse?
Author: Evan Null
