[UAE Warns the U.S.: May Switch to RMB for Oil Transactions if Dollar Supply Falls Short] According to Golden Finance, on April 21, the governor of the UAE Central Bank proposed the idea of establishing a currency swap mechanism during a meeting with U.S. Treasury and Federal Reserve officials in Washington, D.C., last week. Although the UAE has not yet been severely impacted economically by the Iran conflict, its energy infrastructure has been damaged, and the blockade of the Strait of Hormuz has disrupted oil exports, thereby affecting its dollar-denominated revenue. Reaching a currency swap agreement with the U.S. would provide the UAE Central Bank with a cheap supply of dollars to support the dirham pegged to the dollar or to supplement foreign exchange reserves during liquidity shortages. UAE officials pointed out that it was the U.S. that instigated the conflict with Iran, dragging the UAE into this devastating confrontation. If dollar supply becomes tight, they may be forced to use RMB or other currencies for oil transactions. (Dongxin News Agency)