Business | Economy
Dollar peg to stay in the interest of nation
A panel of experts recommend that it is in the interest of the UAE to maintain the dirham's existing peg to the dollar.
- By Babu Das Augustine, Banking Editor
- Published: 21:50 April 9, 2008
- The commission ruled out revaluation of the dirham against the greenback.
- Image Credit: Gulf News Archive
Dubai: A panel of experts appointed by the UAE government to examine the merits of changing the dirham's peg to the dollar on Wednesday recommended that it is in the interest of the country to maintain the currency's existing peg to the dollar.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Wednesday met the commission tasked with studying the issue of de-pegging the UAE dirham.
The commission, while recommending that the peg should be maintained in the larger interest of the country's economy, also ruled out revaluation of the dirham against the greenback, WAM reported on Wednesday.
At the meeting which took place at the Emirates Towers in Dubai, Shaikh Mohammad was briefed by members of the committee on their views on de-pegging and exchange rate policy. He praised the commission's recommendations, reiterating his confidence in its members' experience as well as in their vision for the future.
The recommendation of the committee follows Central Bank governor Nasser Al Suwaidi's statement on Tuesday that the UAE had no plans to change its link to the dollar or revalue its currency.
"The commission's recommendations reflect the UAE government's plans to maintain the dollar-dirham peg as part of its efforts to preserve the UAE's sup-reme national interests as well as preserve a healthy economy in the short and long run," the governor was quoted as saying by WAM.
Present at yesterday's meeting were Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai; Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai; Mohammad Al Gergawi, Minister of Cabinet Affairs; Obaid Humaid Al Tayer, Minister of State for Financial Affairs, and other senior officials.
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