UAE Requests Currency Swap from US Amid Conflict, This is Trump's Response

REPUBLIKA.CO.ID, ABU DHABI – The United Arab Emirates (UAE) is exploring the possibility of financial support from the United States (US) amid economic pressures resulting from the conflict with Iran. A Wall Street Journal report states that UAE Central Bank Governor Khaled Mohamed Balama proposed establishing a currency swap line to officials from the Federal Reserve and the US Department of the Treasury, including Treasury Secretary Scott Bessent, during a meeting in Washington last week. According to US officials cited by the WSJ, the Emirates have so far managed to avoid the worst economic impacts of the war but still deem it necessary to secure guarantees for US dollar liquidity. This discussion reflects the UAE’s concerns that the conflict could erode foreign exchange reserves, trigger capital flight, and undermine its position as an international financial hub. The United Arab Emirates is not entirely reliant on the US. Previously, as reported by aNews, the UAE established a currency swap line of around $5 billion with Bahrain earlier this month to help enhance financial stability. The war has caused damage to the UAE’s energy infrastructure and blocked oil shipments through the Strait of Hormuz, thereby disrupting vital US dollar revenue flows. UAE Minister of State for International Cooperation, Reem Al Hashimy, stated in an interview with ABC that her country has been hit by more than 2,800 missiles and drones since the US-Israel war with Iran began on 28 February. US President Donald Trump confirmed that Washington is considering options for financial assistance, including a currency swap line. “Yes,” Trump told CNBC, “they are a good ally. If I can help them, I will do so.” “If the UAE has problems, though I find it hard to believe, but if they do have problems, we will be there for them.” With foreign exchange reserves of around $295 billion, the UAE actually still has a strong financial buffer. However, this step is viewed as a precautionary strategy to maintain market confidence and ensure the stability of the domestic financial system amid geopolitical uncertainty.