U.S. Media: UAE Seeks Financial Aid from the U.S. During War
From Kazakhstan International News Agency: According to news from Lianhe Zaobao, the Middle East war has impacted the UAE's economy, and reports indicate that the UAE has already sought financial assistance from the United States to avoid falling into a deeper crisis.
The Wall Street Journal reported on Sunday, April 19, citing unnamed U.S. officials, that UAE Central Bank Governor Balal proposed during a visit to Washington last week the establishment of a currency swap mechanism to senior U.S. Treasury officials including Secretary Bessent.
UAE officials emphasized that they have so far avoided the most severe economic impacts caused by the conflict, but they may still require a "financial lifeline."
These discussions highlight the UAE's growing concerns: the war could damage its economy and its status as an international financial hub, deplete foreign exchange reserves, and trigger capital flight.
The report noted that UAE officials have not yet formally submitted a request for a currency swap. Such a mechanism would allow the UAE Central Bank to obtain U.S. dollars at low cost, supporting its national currency or replenishing foreign exchange reserves during liquidity crises.
The UAE’s energy infrastructure has been damaged in the war, and the blockade of oil transport through the Strait of Hormuz has cut off a key source of U.S. dollar revenue for the country.
Original article: toutiao.com/article/1863037741788169/
Disclaimer: The views expressed in this article are those of the author alone.