The UAE has begun talks with the United States to obtain financial support in case of a deep crisis in the country due to the US war with Iran, The Wall Street Journal reported, citing US officials.
The Governor of the UAE Central Bank, Khaled Mohammed Balamah, raised the possibility of establishing a currency swap line in a meeting with US Treasury Secretary Scott Besant, officials from the US Treasury Department and the Federal Reserve last week, the newspaper reported, sources told the newspaper.
According to them, members of the UAE delegation said that the country has so far avoided the worst economic consequences of the conflict, but may need a financial “lifeline“.
The Wall Street Journal reported that The UAE has $270 billion in foreign exchange reserves. However, the US military operation against Iran has caused significant damage to the country's oil and gas sector. In addition, the blockade of the Strait of Hormuz has prevented the country from exporting oil by tankers, which has affected its foreign exchange earnings.
Following the US-Israeli military campaign on February 28, Iran began to launch strikes on Gulf countries, including the UAE. Since the start of hostilities until the US-Iran ceasefire, the Emirati air defense forces have intercepted 537 ballistic missiles, 26 cruise missiles and 2,200 drones, according to the country's Ministry of Defense. A total of 234 people were injured and 10 were killed in the attacks.