The United Arab Emirates and the United States are in discussions to establish a currency swap agreement, according to a report from Yonhap News Agency citing South Korean economic sources.
The talks aim to bolster financial resilience amid growing concerns over global economic volatility, with officials exploring mechanisms to enhance liquidity support between the two nations’ central banks.
Such an arrangement would allow the UAE’s central bank to access U.S. Dollars in exchange for Emirati dirhams and vice versa, providing a buffer against external shocks to currency markets or capital flows.
Even as no formal agreement has been finalized, the discussions reflect broader efforts by Gulf states to deepen financial coordination with major economies as part of strategic risk management in uncertain macroeconomic conditions.
The move underscores the increasing importance of bilateral liquidity facilities in safeguarding financial stability, particularly for economies with significant trade and investment ties to the U.S. Dollar-denominated global system.
