Thread: US 'Supports' Currency Reforms

US 'SUPPORTS' CURRENCY REFORMS:

Analysts have said that the latest International Economic and Exchange Rate Policies report by the US Treasury, also known as the FX Manipulation report, signals approval for GCC currency reforms. The report recognises the inflationary pressures being felt by Gulf countries through the dollar peg, which analysts say may show political support for revaluation.


and

US GIVES GCC 'GREEN LIGHT' TO DROP DOLLAR PEGS:

US investment bank Merrill Lynch believes the US treasury's positive forecast for the dollar and recognition of the inflation problem in the GCC has effectively given Gulf nations approval to drop the dollar peg and track a basket of currencies, reported our sister company Meed. In its new report the bank suggests that the UAE and Qatar will move to a currency basket in the next few months, which would coincide with the dirham and riyal appreciating by 5 percent by the end of 2008. It also expects Saudi Arabia to change its peg to the dollar in 2009.

AME Info, Abu Dhabi, United Arab Emirates, business briefs


Also

INFLATION THREATENS MONETARY UNION:

A report by credit company Fitch Ratings has found that widely varying inflation rates could threaten a 2010 GCC single currency. The variances could hamper decisions such as settling on an international exchange rate. Recent figures place the UAE inflation rate at close to 11 percent, on a par with Saudi Arabia, while Bahrain's inflation figures stand at $5.2 percent.

AME Info, Abu Dhabi, United Arab Emirates, business briefs