Sunday 30 June 2013

Middle East will feel effect as Federal Reserve turns off the tap - The National

"As the United States Federal Reserve gets ready to gradually ease off its fire hoses, governments and businesses in the Middle East and North Africa are hoping it won't lead to an outbreak of financial wildfires.

The signal from the central bank's chairman Ben Bernanke earlier this month that the Fed may start to taper off quantitative easing (QE) this year, triggered a sell-off across equities, government bonds and emerging market assets. The Middle East and North Africa (Mena) region was no exception. The general index of the Dubai Financial Market slumped the most in a year and yields on UAE credit spiked to their highest in 18 months.

While the Fed has said the stimulus withdrawal depends on the performance of the US economy, the prospect of an end to almost five years of cheap money sloshing around the global financial system is enough to strike fear into the hearts of investors."

'via Blog this'

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