U.S. President Donald Trump said the United Arab Emirates (UAE) suffered significant damage from the war with Iran and that the United States is considering providing financial support through measures such as a currency swap.
On the 21st (local time), in a phone interview with CNBC, President Trump answered "Yes" when asked whether he was considering entering into a currency swap with the UAE. He added, "If I can help, I will help," and said, "They are our strong ally, and as you know, this is an abnormal time."
President Trump said the UAE was the Gulf country that suffered the most from the U.S.-Iran war, and remarked that it was surprising that such considerations were being made despite it being a wealthy nation.
Earlier, the Wall Street Journal (WSJ) reported that Khaled Mohammed Balama, governor of the Central Bank of the UAE, attended the annual meetings of the International Monetary Fund (IMF) and the World Bank and proposed a currency swap to U.S. Treasury Secretary Scott Bessent.
At the time, the WSJ said the UAE pressed the point that the U.S. attack on Iran had involuntarily drawn the country into the conflict and that, if dollars became scarce, it would have no choice but to consider using other currency such as the yuan for crude oil transactions.
The UAE is said to have suffered major economic damage as oil and gas infrastructure across the Middle East was damaged by the war with Iran and crude oil exports through the Strait of Hormuz were blocked. Earlier, the New York Times (NYT) noted that the mere fact the UAE inquired about financial support shows how far-reaching the ripple effects of this war are.
However, the UAE ambassador to the United States said on X (formerly Twitter), "We appreciate President Trump recognizing the UAE as one of the United States' most important economic and trade partners," but added, "The claim that the UAE needs external financial support is misinformed."