WSJ: UAE Asks U.S. for War-Time Financial Aid

BlockBeats News, April 20th. According to WSJ, U.S. officials stated that the UAE has engaged in negotiations with the United States to discuss obtaining financial support in case a potential war with Iran plunges the oil-rich nation into a deeper crisis.

Officials said UAE central bank governor Al Barami met with U.S. Treasury Secretary Yellen and officials from the Treasury Department and the Fed in Washington last week, proposing the idea of a currency swap. The UAE emphasized that so far they have not felt the most severe economic impact of the conflict but may still require financial assistance.

UAE officials have not formally requested the currency swap. This measure would allow the UAE central bank to access U.S. dollars at a low cost to support its currency or bolster foreign exchange reserves in times of liquidity crisis. U.S. officials described this proposal as preliminary and precautionary during recent discussions with the United States.