Gulf States Could Gain by Ending Peg to Dollar, DIFC Economist Saidi Says - Bloomberg

Gulf states could gain by ending their peg to the dollar in favor of a basket of currencies, said the chief economist of the Dubai International Financial Centre.

“It would be advantageous for the GCC countries, given the center of their trade is particularly with Asia and with Europe, to have a currency basket,” Nasser Saidi told Bloomberg Television in Abu Dhabi today.

He said such a move could not be easily implemented at a time of global financial uncertainty, “so I think the countries of the region are going to wisely wait until you have much less volatility in money markets and financial markets before taking any decisions with respect to the exchange rate regime.”