UAE Warns US Over Oil Trade Currency Amid Rising Regional Tensions
Citing unnamed US officials, the outlet said UAE Central Bank Governor Khaled Mohamed Balama conveyed what was described as an “implicit threat” regarding the dollar’s global dominance during a meeting in Washington with US Treasury Secretary Scott Bessent last week.
According to the report, Balama warned that Abu Dhabi could be pushed toward alternative currency arrangements if regional economic instability continues to escalate, particularly in the context of the ongoing US-Iran tensions, which he linked to potential liquidity pressures affecting dollar access.
Reports also indicated that Iran has been pursuing asymmetric tactics designed to increase pressure on the United States and its allies. The UAE, according to the same sources, has experienced significant spillover effects from these tensions, including attacks involving drones and missiles targeting military-related sites and other strategic locations.
The discussion also touched on possible financial measures, including currency swap arrangements. However, such mechanisms are typically managed through the Federal Reserve, and approval in this case is considered unlikely, according to the report. A previous example was cited involving a $20 billion support arrangement facilitated by the US Treasury for Argentina ahead of an election.
The article further noted that the idea of Gulf states contributing to the costs associated with conflict involving Iran was previously raised during the US administration of Donald Trump. Academic estimates cited in the report suggested that early phases of the conflict may have cost the United States around $2 billion per day.
Separately, public commentary reflecting frustration with US policy in the region has emerged from figures associated with Gulf leadership circles. In remarks made on Sunday, Abdulkhaleq Abdulla, a former adviser to the UAE president, reportedly called for reconsideration of US military bases in the country, suggesting they may no longer serve strategic interests and proposing a shift toward strengthening defense capabilities through advanced American weapon systems instead.
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