Business | Economy

'Stop speculation about de-pegging,' say top officials

The decision of the UAE government to go on with its current monetary policy is not taken haphazardly, as it is the result of careful studies carried out by experts. The policy realises the national interests and serves its overall economy; said a prominent UAE industrialist.

  • WAM
  • Published: 00:08 April 14, 2008
  • Gulf News

Abu Dhabi: The decision of the UAE government to go on with its current monetary policy is not taken haphazardly, as it is the result of careful studies carried out by experts. The policy realises the national interests and serves its overall economy; said a prominent UAE industrialist.

Member of the board of directors of the Abu Dhabi Chamber of Commerce and Industry (ADCCI) and chairman of Ascorp Holdings, Khalfan Saeed Al Ka'abi also asked the financial analysts to avoid speculating about the de-pegging of the dirham from the dollar or even revaluating it.

Al Ka'abi said that the decision to continue to peg the dirham to dollar is based on considerations for the well being of the national economy, and much thought and careful study have led the country to go ahead with its policy.

"The determination of the leaders of the country to stick to its monetary policy on the face of rampant speculations from many quarters about a de-pegging gives a strong message of prudent thinking for the best interests of the nation and its economy," said Al Ka'abi.

"UAE will not depend on long-term or permanent solutions for temporary and phenomenal crises. The overall welfare of the national economy is the ultimate aim, and so the UAE Central Bank will definitely continue its current monetary policy," he said.

He added that to allow the UAE currency to appreciate against dollar by way of revaluating it, means that the migration of the foreign investment to UAE will decline.

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