Wednesday, December 5, 2007

Structural changes taking place ?

Gulf Arab Nations May Revalue Currencies to Combat Weak Dollar

"Gulf Arab nations may revalue their dollar-pegged currencies in the next two months to combat the inflationary affect of a weakening dollar, according to Standard Chartered Plc. The six Gulf Cooperation Council members, Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman are restricted in the fight against inflation because their dollar pegs force them to mimic U.S. Federal Reserve monetary policy. Rising import prices caused by the dollar's decline and increased revenue from higher oil prices has pushed inflation to a five- year high in the Gulf region".

Posted by alan @ 11:34 AM (454 views)
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2 thoughts on “Structural changes taking place ?

  • Cheekie Charlie says:

    In my limited knowledge this dollar pegging must be providing structure to the dollar and holding back inflation if it goes the fed will surely have to reconsider their IR stratergy. Its a shame the US is a great nation there are 100,000 true martyrs burried at the other side of the channel who died young for future generations in this country. But the US will come back(after Bush) unlike the UK, they have a more balanced economy. Lets hope they can save us again.

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  • Dohousescrashinthewoods says:

    I realise this has now dropped off, but if anyone is still reading, I have family living in the Middle-East who say “the Greal Bully is trying to pressure us not to unpeg”.

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