Sunday 1 November 2009

Time for UAE to rethink dollar peg

The UAE should consider a fresh monetary policy, reducing its link with the US currency that has been declining in value.

As a result, the UAE and other Gulf currencies that are pegged to the dollar are losing value.

The UAE, the Arab world's second biggest economy, is part of the six-member Gulf Cooperation Council. It was also part of a planned monetary union till May this year when it walked away over a dispute. The move frees up its monetary policy from certain obligations.

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