ABU DHABI: The United Arab Emirates is currently in discussions with the United States regarding a potential currency swap agreement aimed at strengthening economic cooperation between the two nations.

Officials indicated that such arrangements are limited to a select group of countries, highlighting the growing level of trade and investment ties required to support such financial mechanisms.

A currency swap line allows central banks to exchange currencies directly, helping reduce dependence on foreign exchange markets while lowering transaction costs and minimizing exchange-rate risks.

Experts note that inclusion in such arrangements reflects strong financial credibility and deep economic integration between participating countries.

The United States currently maintains standing currency swap agreements with a small number of major global economies, making any potential inclusion a significant development for the UAE.

The discussions come amid ongoing efforts by both countries to enhance bilateral trade, investment flows, and financial cooperation.