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Tuesday, 14 March 2017

Pressure building on Bahrain and Oman currency pegs – Moody’s

Pressure building on Bahrain and Oman currency pegs – Moody’s:

"Pressure is building on the currency pegs of states Bahrain and Oman, the Gulf states with the weakest external balance of payments, ratings agency Moody’s said in new research issued on Tuesday. While most Gulf Cooperation Countries have favourable net asset positions that can withstand pressure on their external positions, Moody’s said Bahrain has low foreign exchange reserves while Oman has a large current account deficit. Saudi Arabia also faces some of these pressures, but Moody’s believes it can rely on low debt and large forex reserves of 82 per cent of gross domestic product – though they have fallen by almost $200bn since end-2014 to $526bn at the end of 2016."



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