UAE warns the U.S.: If the dollar shortage occurs, switch to trading oil in RMB

Golden Finance reported that on April 21, the Governor of the Central Bank of the United Arab Emirates proposed the establishment of a currency swap mechanism during meetings last week in Washington, D.C. with U.S. Treasury Department and Federal Reserve officials. Although the UAE has not yet been severely impacted economically by the Iran conflict, its energy infrastructure has been damaged, and the blockade of the Strait of Hormuz has cut off oil exports, thereby affecting its dollar-denominated income. Reaching a currency swap agreement with the United States would provide the UAE Central Bank with low-cost U.S. dollar supply to support the dollar-pegged dirham, or to replenish foreign exchange reserves when liquidity is insufficient. UAE officials stated that the United States provoked the Iran war, causing the UAE to become involved in this destructive conflict; if U.S. dollar supply is tight, they may be forced to conduct oil transactions in renminbi or other currencies. (Dongxin News Agency)