By Seyoon Kim and Matthew Brown
Nov. 15 (Bloomberg) -- The United Arab Emirates may consider pegging its dirham to a basket of currencies, consisting mostly of dollars, said central bank Governor Sultan Bin Nasser al- Suwaidi. The falling dollar will trigger a ``review'' of the U.A.E.'s dollar peg, al-Suwaidi said in an interview in Gwacheon, South Korea today, signaling for the first time that the U.A.E. may drop the dirham's link to the U.S. currency in the near future. Gulf Arab states, including the U.A.E and Saudi Arabia, that together earn more than $1.2 billion per day from oil sales, may deal the dollar a further blow as they move to stem imported inflation by revaluing their currencies. A move away from the dollar may see the countries' sovereign wealth funds, which hold an estimated $2 trillion, diversify their holdings.
Currency Review
Al-Suwaidi has previously said that any move away from the dollar peg would be in unison with its GCC neighbors, including Saudi Arabia and Qatar. Heads of state from the six-nation council will meet Dec. 3-4 in Qatar to discuss monetary policy and regional security. ``It's not my prediction but everybody is expecting that the U.S. dollar will go down further,'' al-Suwaidi said today. ``It will trigger a review.'' The plan is ``not to drop the dollar-peg but maybe to reduce it to a basket which will consist of more dollars, but not totally 100 percent,'' he said.
Ladies i told you a couple of month ago...
US the new third world.... but they have still their troops
take a wild guess who will be next to get a "visit" from them??
