Hobbled by large deficits, high unemployment, slow growth and political brinkmanship, US claims to global economic supremacy are under pressure.
With forecasts that the dollar will become weaker still, many in the Middle East argue that the time has come to adjust the dollar pegs or do away with them altogether.
Five of the six members of the Gulf Co-operation Council – Saudi Arabia, the United Arab Emirates, Qatar, Oman and Bahrain – maintain currency pegs to the greenback. Only Kuwait pegs its dinar to a basket of currencies but that basket is believed to be heavily weighted towards the dollar.
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