[Foreign Media: UAE Warns US That If War Depletes Dollar Supply, It May Switch to Renminbi for Oil Sales]
According to a report by the Asia Defense Security website (DEFENCE SECURITY ASIA) on April 21, 2026: The United Arab Emirates has privately warned Washington that if a prolonged shortage of dollars during wartime persists, it may be forced to shift oil sales pricing to the renminbi—a move that would pose the most serious challenge yet to the petrodollar system established since the 1970s.
This warning was raised at a high-level meeting in Washington, following Iranian missile and drone attacks disrupting energy flows in the Persian Gulf, exposing financial vulnerabilities, and intensifying doubts about U.S. economic commitments.
According to officials present at the meeting, UAE Central Bank Governor Khaled Mohamed Balama had cautioned that a depletion of dollar liquidity could ultimately compel the UAE to arrange alternative currencies for oil transactions.
Reports indicate that Balama told U.S. officials that if the UAE faces a dollar shortage, Abu Dhabi might have no choice but to conduct trade using the renminbi or other currencies.
This statement carries significant geopolitical weight, as the Emirati dirham remains directly pegged to the U.S. dollar. A sustained dollar shortage would strategically undermine domestic financial stability.
The context behind this warning is Iran’s recent attack involving over 2,800 drones and missiles, which damaged UAE energy infrastructure and disrupted oil tanker traffic through the Strait of Hormuz.
Since the Strait of Hormuz handles approximately one-fifth of global oil trade, even temporary disruptions immediately constrain UAE export revenues, foreign exchange reserves, and domestic dollar liquidity.
Although Abu Dhabi currently holds over $270 billion in foreign exchange reserves, prolonged export interruptions could gradually deplete its dollar buffer.
U.S. officials are reported to have interpreted the UAE's message as both a genuine concern over liquidity and a carefully crafted diplomatic signal aimed at securing urgent financial assistance.
Regardless of its true intent, this incident has transformed the immediate wartime financing issue in the Gulf region into a broader strategic debate over future global currency dominance.
For Beijing, the UAE’s warning represents the strongest indication yet that geopolitical conflict may accelerate China’s ambition to internationalize the renminbi through energy markets.
For Washington, the event underscores that military escalation in the Persian Gulf not only brings security consequences but also potential long-term monetary and strategic repercussions.
Disclaimer: The above report originates from the Asia Defense Security website.
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Original article: toutiao.com/article/1863126917127178/
Disclaimer: The views expressed in this article are solely those of the author.