UAE warns of yuan shift without dollar aid

The United Arab Emirates has warned U.S. officials that without access to dollar liquidity, it may shift oil transactions to Chinese yuan, threatening dollar dominance in global energy markets. UAE Central Bank Governor Khaled Mohamed Balama raised the prospect of a currency swap line with Treasury Secretary Scott Bessent and Federal Reserve officials during IMF and World Bank meetings in Washington. Emirati officials framed the request as precautionary but argued Trump's decision to strike Iran dragged them into a conflict they did not choose, citing Iranian attacks that damaged oil infrastructure and blocked tanker access. The dirham is pegged to the dollar and backed by $270 billion in reserves, but analysts warn of capital flight and volatility risks.