The United Arab Emirates has confirmed it is in discussions with the United States over a potential currency swap line, as regional economic uncertainties continue to shape financial strategy.
Speaking on Monday at the Make it in the Emirates conference in Abu Dhabi, UAE, the UAE’s Minister of State for Foreign Trade, Thani Al Zeyoudi, said negotiations were ongoing but no agreement had yet been finalized.
“It is still under discussion,” Al Zeyoudi stated when asked whether the arrangement had been secured.
He dismissed suggestions that the proposed swap line was being pursued as a financial bailout, emphasizing instead that the UAE’s objective is to strengthen its financial positioning by aligning with countries that already maintain such arrangements with the US.
According to the minister, the move is part of a broader effort to enhance economic resilience and join what he described as an “elite group” of nations with established currency swap frameworks involving the United States.
Reports last month by the The Wall Street Journal, citing US officials, indicated that the UAE had explored the option as a precautionary measure amid concerns that ongoing regional tensions could place additional strain on its economy.
Currency swap lines typically allow central banks to exchange currencies during times of financial stress, providing liquidity support and helping stabilize markets.
While discussions remain at an early stage, the confirmation signals continued cooperation between the UAE and the US on financial and economic matters, particularly as global markets react to geopolitical developments in the Middle East.
