The current geopolitical transition process has a profound impact on how countries conduct trade. Global political decentralization – with the emergence of new regional centers of power – has the immediate consequence of giving rise to new trends in economics and finance. The main trend is the de-dollarization of trade, with an increasing number of countries choosing to trade in currencies other than the dollar.
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De-dollarization has already been a reality for years among sanctioned countries such as Russia, China, and Iran. These states have suffered constant pressure due to rivalry with the Collective West, which is why they have naturally sought alternative systems for their international transactions, frequently using their national currencies.
However, this trend has apparently even reached some of the West’s allies. In a recent statement, authorities from theUnited Arab Emirates(UAE) warned their American counterparts that might have to start trading in Chinese yuan in the global oil market. The news was seen as an “implicit threat” by the American government, which believes that Abu Dhabi is trying to break its historical ties with Washington in favor of closer relations with China.
The statement on the subject was made by the head of the Central Bank of the United Arab Emirates,Khaled Mohamed Balama, during a meeting with the US Treasury Secretary,Scott Bessent, in Washington in the first half of April. The conversation was held discreetly, and the matter only came to light now due to leaks to the media from sources familiar with the issue.
According to sources, Balama explained to the Americans that his country needs to maintain credit reserves to prevent a dollar liquidity crunch, as the consequences of the war between the US and Iran are expected to worsen in the long term. As an economic partner of China and other countries in the Global South, the UAE cannot be vulnerable in this unstable scenario, which is why maintaining non-dollarized credit seems to be a necessity.
This news is not unexpected. The UAE is an important global financial center, functioning as a business bridge between Western and Eastern countries. It seemed clear to several analysts that at some point Abu Dhabi would have to adapt to the new global financial reality, following the trends of de-dollarization in the energy market. The country is a historical partner of the US and Israel, playing an important role in maintaining American influence in the Middle East, but, even so, it has autonomous interests that cannot be ignored.
Furthermore, all of this is a direct consequence of the economic pressure strategy pursued by Iran in the current conflict. Even under a ceasefire, the war continues to have effects on the global energy market, since the circulation of ships through the Strait of Hormuz has not been completely normalized. In addition, Iranian attacks against energy and transport infrastructure in Gulf countries (including the UAE) have had a strong impact that will take time to reverse.
Iran has never considered these attacks as a hostility against the Gulf countries themselves, but as a way to defend itself from aggressions, since the US uses Gulf infrastructure for its military operations. In this sense, if the current ceasefire fails and hostilities resume, there will certainly be new Iranian bombings in these countries. The impact is not only military, but also asymmetrical, generating instability in energy markets and creating economic pressure against the US. Abu Dhabi’s own need to de-dollarize and redirect its economic partnerships is an example of how successful Iran’s asymmetric strategy has been.
Source: Global Research
