Dubai: The UAE is reinforcing the strength and stability of the dirham through advanced financial cooperation with the United States. High-level discussions held in Washington have focused on the possibility of establishing currency swap lines between the Central Bank of the UAE and the US Federal Reserve — an arrangement that would allow the UAE to access US dollar liquidity when needed.According to a 'Wall Street Journal' report, the talks are ongoing. U.S. President Donald Trump said on Tuesday that a US-UAE swap line is under consideration.U.S. Treasury Secretary Scott Bessent said on Wednesday, according to 'Reuters', that both the UAE and the United States would benefit from such an arrangement. “Swap lines, whether from the Federal Reserve or the Treasury, are designed to maintain order in dollar funding markets and prevent the disorderly sale of US assets,” Bessent said, adding that a swap line would benefit both countries.A proactive move in a volatile global landscapeRather than reacting to financial or geopolitical shocks, the UAE is pursuing a forward-looking approach aimed at ensuring reliable access to US dollars. This strategy is intended to protect the national economy from global disruptions and maintain confidence in the country’s monetary system.Five strategic advantagesThe proposed swap line is expected to offer several key benefits:Dirham protection: Supports exchange rate stability and helps preserve the purchasing power of residents’ savings.Immediate liquidity: Allows local banks to access US dollars quickly during periods of global stress.Global confidence: Positions the UAE among a limited group of countries with direct financial cooperation involving the US Federal Reserve.Investment attraction: Reinforces investor confidence by signalling a secure and internationally integrated financial environment.Trade stability: Helps maintain smooth import and export flows, strengthening supply chain resilience.Strong financial foundationsThe UAE’s financial position highlights its readiness for such cooperation. The country holds foreign reserves of around $270 billion, equivalent to approximately one trillion dirhams, and maintains a monetary base coverage ratio of about 119%, reflecting solid financial fundamentals. The proposed swap line would carry no sovereign risk, as it is structured as a temporary liquidity facility rather than a debt instrument.A continued path toward global leadershipBy advancing these discussions, the UAE aims to reinforce its position as a global financial safe haven—anticipating risks, strengthening resilience, and supporting long-term economic stability.

New York: Wall Street stocks advanced on Wednesday after U.S. President Donald Trump unilaterally extended a ceasefire in the Iran war, while oil prices resumed their upward climb after Iran tested the fragile truce by seizing cargo ships in the Strait of Hormuz.All three major U.S. stock indexes ended higher, with technology shares pushing the Nasdaq to the forefront. Gold rebounded from a one-week low, while the dollar edged higher.“Despite the energy shock and the barrage of headlines confronting investors, the macro economy, corporate fundamentals and consumer spending remain strong,” said Bill Merz, head of capital markets research at U.S. Bank Wealth Management in Minneapolis. “Investors are taking the view that the Strait of Hormuz will reopen before significant damage is inflicted on the global economy.”Iran’s Revolutionary Guards seized two vessels for alleged maritime violations just hours after Trump agreed to extend the ceasefire pending negotiations. Roughly one-fifth of global oil and liquefied natural gas supplies typically pass through the Strait of Hormuz.U.S. stocks, initially hit hard by the conflict, have since fully recovered, with both the S&P 500 and the Nasdaq reaching record closing highs in recent sessions. However, geopolitical uncertainty remains, and a prolonged period of elevated energy prices continues to pose risks.About two-thirds of S&P 500 companies that have reported earnings since early April have flagged concerns over energy costs during analyst calls, according to a Reuters review of transcripts.“Anytime a global event like the Middle East conflict dominates headlines, it shows up in earnings commentary,” Merz said. “But we’re not seeing it materially change behaviour just yet.”First-quarter earnings season is well under way, with analysts forecasting year-on-year S&P 500 earnings growth of 14.4% for the January–March period, according to the latest LSEG data.The Dow Jones Industrial Average rose 235.58 points, or 0.48%, to 49,384.72. The S&P 500 gained 57.95 points, or 0.82%, to 7,121.98, and the Nasdaq Composite climbed 326.49 points, or 1.35%, to 24,586.46.European shares closed lowerEuropean shares closed lower for the third consecutive session as Middle East tensions weighed on sentiment and investors assessed corporate earnings. Several multinational companies have withdrawn financial guidance or signalled price increases since the conflict began.MSCI’s global equity index rose 3.12 points, or 0.29%, to 1,069.58. Europe’s STOXX 600 fell 0.35%, while the FTSEurofirst 300 slipped 0.35%.Emerging market stocks declined 0.56%, while MSCI’s Asia-Pacific index excluding Japan fell 0.61%. Japan’s Nikkei edged up 0.40%.The dollar strengthened modestly against the euro amid ongoing geopolitical concerns. The dollar index rose 0.22% to 98.59, while the euro slipped 0.29% to $1.1708. Against the yen, the dollar rose 0.06% to 159.46.Crypto gainsBitcoin gained 4.27% to $78,974.43, while ethereum rose 3.5% to $2,398.86.U.S. Treasury yields edged higher but remained rangebound. The benchmark 10-year yield rose to 4.298%, while the 30-year yield climbed to 4.904%. The two-year note yield rose to 3.794%.Oil prices jumped after reports of ship seizures in the Strait of Hormuz and were further supported by a surprise drawdown in U.S. gasoline and distillate inventories. U.S. crude settled up 3.67% at $92.96 per barrel, while Brent crude rose 3.48% to $101.91 per barrel.Gold prices rose after touching a one-week low. Spot gold gained 0.44% to $4,732.61 an ounce, while U.S. gold futures rose 0.93% to $4,742.20 an ounce.