The United Arab Emirates and Qatar may revalue their currencies against the dollar before other Gulf Arab countries, such as Saudi Arabia, the governor of the Dubai International Financial Centre said.
“You might end up with some countries moving before the others, though we hope” the six countries of the Gulf Co-operation Council will move together, said Omar bin Sulaiman, head of the government-owned tax-free business park that has led Dubai's drive to attract international financial institutions.
Gulf states are under pressure to end their currency pegs to the dollar after the US currency fell 10% against the euro in 2007. Inflation in the region is accelerating at the fastest pace in at least five years as the weak dollar drives up import costs.
The UAE is considering dropping the dirham’s peg to the dollar and linking to a basket of currencies, Sultan Nasser al- Suwaidi, governor of the country’s central bank, said in a November 15 interview in Gwacheon, Korea.
The six members of the Gulf Cooperation Council, including Saudi Arabia, will discuss a proposal next month to revalue their currencies, HE Abdulrahman bin Hamad al-Attiyah, the Secretary General of the Gulf Co-operation Council, said yesterday.
“The UAE is looking at this, so is Qatar, and they’re the two discussing it loudly, Sulaiman said in an interview in Dubai yesterday. “It seems the Saudis are the least likely to move on this issue. The peg will be eventually changed, the question is when.”
Saudi Arabia, the biggest member of the group, has no plans to change its exchange rate against the US currency, Finance Minister Ibrahim al-Assaf said yesterday. – Bloomberg
“You might end up with some countries moving before the others, though we hope” the six countries of the Gulf Co-operation Council will move together, said Omar bin Sulaiman, head of the government-owned tax-free business park that has led Dubai's drive to attract international financial institutions.
Gulf states are under pressure to end their currency pegs to the dollar after the US currency fell 10% against the euro in 2007. Inflation in the region is accelerating at the fastest pace in at least five years as the weak dollar drives up import costs.
The UAE is considering dropping the dirham’s peg to the dollar and linking to a basket of currencies, Sultan Nasser al- Suwaidi, governor of the country’s central bank, said in a November 15 interview in Gwacheon, Korea.
The six members of the Gulf Cooperation Council, including Saudi Arabia, will discuss a proposal next month to revalue their currencies, HE Abdulrahman bin Hamad al-Attiyah, the Secretary General of the Gulf Co-operation Council, said yesterday.
“The UAE is looking at this, so is Qatar, and they’re the two discussing it loudly, Sulaiman said in an interview in Dubai yesterday. “It seems the Saudis are the least likely to move on this issue. The peg will be eventually changed, the question is when.”
Saudi Arabia, the biggest member of the group, has no plans to change its exchange rate against the US currency, Finance Minister Ibrahim al-Assaf said yesterday. – Bloomberg
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