Trump Says US Weighing Currency Swap with UAE

Washington- US President Donald Trump has said that he's considering the possibility of a currency swap with the United Arab Emirates to help the Mideast ally secure US dollars, as its oil-rich economy has been rattled by the Iran conflict.

During an interview with CNBC, the president expressed surprise that the nation needs assistance, but made clear he was open to the prospect of making the move to help meet his ally's concerns.

"I mean I'm surprised because they are really rich," Trump said. He added, "You know, they're very good for this country. So, yeah, if I could help them, I would."

The United Arab Emirates, an autocratically ruled federation of seven sheikdoms on the Arabian Peninsula that's home to Dubai, became wealthy from its oil deposits. It pegs its currency, the dirham, to the US dollar.

While it has been able to send some of its oil out via a pipeline to the Gulf of Oman, the closure of the Strait of Hormuz has squeezed the country's oil exports.

The UAE has an estimated USD 2.5 trillion in savings and sovereign wealth funds but may be seeking the swap to "bolster investor confidence in the UAE's financial position if the war were to drag on," said Jason Tuvey, an analyst at Capital Economics. (AP)