U.S. President Donald Trump has said that he's considering the possibility of a currency swap with the United Arab Emirates to help the West Asian ally secure U.S. 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,” Mr. 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 U.S. 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.
