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Posted on 04/22/2026 1:43:14 PM PDT by Miami Rebel
Treasury Secretary Scott Bessent said on Wednesday that he backed the idea of providing economic support in the form of a currency swap to the United Arab Emirates, an oil-rich ally that has been contending with economic fallout from the war in Iran.
Speaking at a Senate hearing, Mr. Bessent said that the Emirates, along with several other countries in the Persian Gulf and Asia, had inquired about the possibility of a swap. He said such a maneuver would prevent the disorderly sale of U.S. assets as nations look to secure access to dollars. The war in Iran has damaged oil and gas infrastructure throughout the Middle East, dealing a blow to economies such as the Emirates that rely on the Strait of Hormuz to transport crude around the world.
The Treasury secretary said that providing a currency swap to the Emirates could benefit the United States by stabilizing foreign exchange markets and protecting American assets around the world. He added that it could be provided by the Federal Reserve or by the Treasury Department, which can deploy its Exchange Stabilization Fund to buy another nation’s currency.
“Swap lines, whether it’s from the Federal Reserve or the Treasury, are to maintain order in the dollar funding markets and to prevent the sale of the U.S. assets in a disorderly way,” Mr. Bessent said. “The swap line would both benefit the U.A.E. and the U.S.”
A currency swap would entail the United States purchasing the Emirates’s currency, the dirham, so that it has more dollars for handling its oil sales transactions.
Senator Chris Van Hollen, a Maryland Democrat, questioned the idea of providing economic support for the Emirates and pointed out that President Trump and his family have personal financial ties to the nation.
(Excerpt) Read more at nytimes.com ...
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It is our opportunity……..like never before.
So do I. I worked in UAE for 2 years and got paid for it.
If the USA walks away from this conflict, as appears quite possible at this point, the GCC countries could see China as a more politically capable ally to restrain Iran, since they themselves seem unwilling to fight. It would be the biggest geopolitical shift since the collapse of the Soviet Union. Meanwhile, Russia has quietly moved back into their Syrian Naval base at Tartar. Trump has some cards to play, but he is playing against many opponents, and has few remaining allies.
“Ukrainian experts are already deploying interceptor drones, electronic warfare suites, and maritime systems to protect vital shipping lanes and infrastructure.”
The Strait of Hormuz wasn't a problem until this war.
The UAE can sell oil futures.
The UAE has a pipeline that bypasses the Strait of Hormuz.
They can get something like 40% of their typical oil production out that way.
Iraq isn’t getting much oil out.
I doubt Kuwait is getting much out.
If 40% is going out at 50% more than the pre-war price than the UAE’s oil income is 60% of pre-war levels.
It should be enough to pay the bills.
“The Strait of Hormuz wasn’t a problem until this war.”
The UAE and Iran both have bypass pipelines, for a reason.
The Emir of the UAE calling, may I speak to Xi please?
....
We at the UAE have oil at $70/barrel, cash & carry, are you interested?
A good portion of which will no doubt be passed right on through to one or more of Kushner’s projects.
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