Trump says US administration weighing currency swap with UAE as Iran war rattles oil-rich economies
During an interview with CNBC, the US president expressed surprise that the country needed help, but made clear he was open to the possibility of taking action to help address his ally’s concerns.
Also read: UAE seeks wartime financial lifeline from US as Iran conflict drags on
“So I’m surprised because they’re really rich,” Trump said. He added, “You know, they’re so good for this country. So yeah, if I could help them, I would.”
Although the UAE has been able to send some of its oil to the Gulf of Oman via pipeline, the closure of the Strait of Hormuz has restricted the country’s oil exports. The UAE has an estimated $2.5 trillion in savings and sovereign wealth funds but may seek swaps “to boost investors’ confidence in the UAE’s financial situation if the war continues,” said analyst Jason Tuvey of Capital Economics. Associated Press.
On Monday, the Wall Street Journal reported that the UAE had begun talks with the United States about obtaining a financial boost if the Iran war plunges the oil-rich Persian Gulf state into a deeper crisis.
UAE Central Bank Governor Khaled Mohamed Balama raised the idea of a currency swap line in meetings with Treasury Secretary Scott Bessent and Treasury and Federal Reserve officials in Washington last week, the WSJ reported, citing officials.
