Investing.com — White House National Economic Council Director Kevin Hassett said on Monday that a currency-swap line for the United Arab Emirates would likely not be necessary, despite recent discussions between UAE and U.S. officials about establishing such a financial safety net.
UAE Central Bank Governor Khaled Mohamed Balama raised the possibility of a currency-swap line during meetings in Washington with Federal Reserve officials and Treasury Secretary Scott Bessent, according to a Wall Street Journal report. Balama said the UAE has avoided the most severe economic fallout from the conflict in Iran so far, but may require a financial safety net if the situation worsens.
Hassett acknowledged the UAE as an “incredibly valuable ally” and expressed confidence that the Treasury would make every effort to assist if needed. “I think that it probably won’t be necessary,” Hassett said on CNBC, noting he had not yet discussed the specific matter with Bessent.
The U.S. established a similar economic stabilization agreement last fall to support the Argentine peso ahead of midterm elections, a move that proved crucial for the political standing of Argentine President Javier Milei, a key ally of President Trump.
Hassett pointed to President Trump’s recent assessment that discussions between the U.S. and Iran have been “moving forward very positively,” suggesting that a major economic downturn for the UAE may be avoided.
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