#Bahrain borrowing 'critical' for currency peg after FX reserves drop - Moody's - Reuters

Bahrain borrowing 'critical' for currency peg after FX reserves drop - Moody's - Reuters:

Bahrain will need to attract additional capital this year, including through borrowing to sustain its currency peg, after a huge drop in foreign reserves due to low oil prices, ratings agency Moody’s said.

One of the financially weakest countries in the Gulf, Bahrain’s foreign reserves more than halved between February and March, and then dropped to 290 million Bahraini dinars ($768.82 million) in April, central bank data showed.

That was their lowest level since 1990, Moody’s said.

Reserves picked up in May, rising to $1.8 billion, after Bahrain issued $2 billion in bonds.