Terrorist Attacks Stall Fed’s Shipments of Dollars to the Gulf
The terrorist attacks in Paris and San Bernardino, Calif., are complicating efforts by the Federal Reserve to resume shipments of U.S. dollars to the United Arab Emirates, a banking hub in the Gulf region.
The Fed about three years ago quietly halted regular shipments of hundreds of millions of U.S. dollars to the U.A.E. central bank due to concerns the cash was falling into the hands of Iranian banks that were under international sanctions, according to U.S. officials and people familiar with the matter. Fed officials about a year ago entered talks with U.A.E. representatives to resume those shipments, but the two sides haven’t yet reached an agreement.