The government of Dubai, U.A.E. largest emirate, is against the currency revaluation and is pro dirham’s peg to the U.S. dollar, according to Sultan Ahmed bin Sulayem, the member of the Dubai’s Board of Executive Council.
Kuwait, the only GCC state that dropped their long-lasting peg to dollar so far, remains alone in its ways to fight the inflation risks. Although all other Middle East countries, that tie their national currencies to the U.S. dollar, are experiencing fast rising consumer prices, they are more reluctant to scrap their pegs.
In an interview at the World Economic Forum in Davos Ahmed bin Sulayem stated:
To change is very risky… It’s important to continue with the dollar despite its weakness.
This opinion has backed up the latest statement by the U.A.E. central bank’s governor as well as the statements by the governors of other GCC countries’ central banks – Bahrain, Oman, Qatar and, most importantly, Saudi Arabia. They will seek other ways to fight the rising inflation, which may be caused by the fast economy growth and the demand for the real estate properties in the region.
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