Washington, DC – US Treasury Secretary Scott Bisent affirmed that the move to establish a currency swap line with the United Arab Emirates is a strategic step that will greatly benefit both Abu Dhabi and Washington.
The Treasury Secretary noted that this mechanism reflects the UAE’s pivotal role as a global financial partner,
emphasizing that the anticipated agreement aims to secure liquidity flows and ensure the stability of the shared financial system,
serving the best economic interests of both countries and providing
a robust and stable investment environment in the face of international volatility.
The UAE is a pillar of stability in financial markets
The US Treasury Secretary explained that the inclusion of the UAE in the currency swap line network is directly
aimed at maintaining the balance and stability of dollar funding markets.
He stated that this step ensures the efficient availability of hard currency in the UAE market,
enhancing the ability of financial institutions to manage their international operations smoothly,
and underscoring the strong US confidence in the UAE’s prudent monetary policy
and its ability to positively influence the stability of cross-border capital flows.
Protecting investments from chaotic liquidation
In analyzing the objectives of this move, the US Treasury Secretary stated that the swap lines
with the UAE would play a crucial role in preventing a chaotic or hasty sale of US assets.
He noted that providing official liquidity channels protects sovereign and domestic investments
from being forced into ill-considered withdrawals during times of crisis,
thus preserving asset value and preventing interest rate shocks or unwarranted volatility in global bond markets.
A strategic partnership with promising economic prospects
The US Treasury Secretary described monetary cooperation with the UAE as “mutually beneficial” and a safeguard for the global economy,
contributing to reduced credit risks and enhanced resilience in both emerging and developed markets.
He emphasized that this partnership transcends mere technical coordination,
reaching a level of strategic integration that protects shared interests and ensures the UAE’s leading role
in shaping the future of global financial stability in collaboration with major economic powers.
