Media: UAE may abandon US dollar in case of shortage
The UAE has initiated talks with the US regarding potential financial support amid the conflict in the Middle East.
This was reported by The Wall Street Journal (WSJ), citing Emirati and American officials.
According to the newspaper, UAE representatives informed American officials during the negotiations that, in the event of a dollar shortage, the country might be forced to use the Chinese yuan or currencies of other countries for oil sales and other transactions.
It is noted that if the UAE switches to using another currency, it could pose a hidden threat to the US dollar, which holds a dominant position among global currencies partly due to its use in oil transactions.
The Emirati dirham is pegged to the dollar and backed by foreign exchange reserves of approximately $270 billion, WSJ emphasizes.
