United Arab Emirates central bank officials have reportedly proposed a currency-swap line with the U.S. Treasury and Federal Reserve as conflict with Iran disrupts regional energy exports. Although the UAE holds trillions in sovereign wealth, the closure of the Strait of Hormuz has impacted dollar-denominated revenue. Officials suggested that a shortage of dollar liquidity could force a pivot toward the Chinese yuan or other currencies for oil transactions, a move that would challenge the greenback's historical supremacy in the oil trade.
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Source · Fortune
