UAE Seeks Permanent Currency Swap Line With US Federal Reserve

The United Arab Emirates is in discussions with the United States to establish a currency swap line intended to enhance financial stability. Trade Minister Thani bin Ahmed Al Zeyoudi announced the effort during the Make It In The Emirates conference in Abu Dhabi, stating that the UAE seeks entry into the elite group of five countries that currently maintain permanent swap arrangements with the U.S. Federal Reserve.

These negotiations follow requests from several Gulf and Asian allies to mitigate economic pressures stemming from a conflict in the Middle East. The unrest, which began with U.S. and Israeli strikes on Iran on February 28, has disrupted shipping through the Strait of Hormuz and triggered oil price spikes and market volatility. U.S. Treasury Secretary Scott Bessent confirmed that allies sought these arrangements to cope with the resulting economic instability.