An advisory body to the UAE government has suggested that the central bank review the country's currency peg to the US dollar, but local bankers said any change to the peg remained very unlikely for the foreseeable future.
The United Arab Emirates will keep its currency peg to the US dollar even after Standard & Poor's downgraded the world's biggest economy, and Oman sees no risk in investing in US treasuries, officials said on Sunday.
Gulf central banke
The central bank's tight control over the foreign exchange market, and the possibility of other Gulf countries providing financial support, mean there is no threat to Bahraini dinar's peg against the US dollar, analysts said.
Bahrain's central bank sees no need to change its currency peg to the US dollar despite the greenback's weakness and expects the country's economy to grow by 3-4 percent this year, its governor said on Tuesday.
"We have repeatedly said our
Kuwait's central bank will keep pegging its dinar to a currency basket for the foreseeable future, and prefers not to rush plans for a Gulf single currency, Governor Sheikh Salem Abdul-Aziz Al-Sabah said on Thursday.
Oman will continue to maintain its currency peg to the dollar, and expects economic growth to rise to 6 percent in 2010, the sultanate's central bank head Hamood Sangour Al-Zadjali, said on Tuesday.
'We shall continue to maintain t
Qatar's riyal currency will stay pegged to the dollar for the time being, but all possibilities will be considered for the planned Gulf monetary union, Central Bank deputy governor Sheikh Fahad bin Faisal Al-Thani said on Thursday.
Saudi Arabia's currency peg to the US dollar "benefits" the kingdom and will remain as long as the greenback remains the main reserve currency globally, the central bank governor was quoted as saying on Wednesday.
Muhammad Al-Jasser's rema
Gulf countries will discuss an option to peg their planned single currency to a basket, Kuwait Foreign Minister Sheikh Mohammad Al-Salem Al-Sabah said on Tuesday.
"It is not necessary for the GCC currency to be linked to a certain currency
Gulf states should consider dropping their pegs to the US dollar to have more tools to control inflation and achieve single currency criteria, a key report said.
Targetting inflation should be the top priority of the Gulf central bank to b