Qatar, GCC countries may maintain currency peg over next decade: BMI

Qatar, GCC countries may maintain currency peg over next decade: BMI:

Currency pegs to the dollar will remain in place in Qatar and four other Gulf Co-operation Council (GCC) countries over the coming decade, BMI Research has said in a report.

With hydrocarbon still accounting for an overwhelming majority of exports, de-pegging would carry limited benefits in terms of boosting external competitiveness, the Fitch Group company said Monday. 
“At the same time, de-pegging would have severe repercussions on investor sentiment towards the region, likely triggering sharp capital outflows,” BMI said. 

This, in turn, would result in depreciatory pressures, raising the costs of much-needed imported goods and fuel popular discontent.