"Qatar and other Gulf states should consider moving to a more flexible exchange rate from long-entrenched pegs to the US dollar, to better manage inflation risk in the next decade, a senior Qatar central bank official said on Tuesday.
He cited Singapore’s currency regime as an example that Gulf states could adopt.
Gulf Arab countries embraced fixed exchange rate regimes to stabilise their currencies and import low inflation from overseas. But their economic cycles have diverged from the United States in recent years as Asia became the Gulf’s dominant trade partner."
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