Business
Experts urge fresh thinking on dollar peg
Opportunity for flexible regime arises on recovery
- By Babu Das Augustine, Deputy Business Editor, Gulf News
- Published: 00:00 November 24, 2009
- Image Credit: Gulf News
Dubai: The Gulf should consider independent monetary policy as economies recover, said Standard Chartered economist Marios Maratheftis.
"We were in a position of strength in 2008 to change the currency policy. Then the crisis came. Now we have the opportunity again as economies recover," he said.
UAE Central Bank Governor Sultan Bin Nasser Al Suwaidi said on Sunday that the country has no plans to abandon the peg.
"The US dollar is the best medium of exchange in international trade and we will continue to use it," he told WAM.
"What's appropriate for the region is a more flexible regime that would allow the currency to strengthen during the boom and weaken during the downturn," Maratheftis said.
Related Links
Business Editor's choice
-
China breaks West's solar monopoly
Some countries in the world, especially Germany and the United States, have made considerable efforts to invest in developing solar energy cells
-
Burberry store spree will cut profit
Trenchcoat maker forges ahead with investment strategy targeting emerging markets
-
Laws needed to spur region bond markets
UAE Central Bank calls for creation of a centralised Sharia board to facilitate the sale of sukuk
Best of web video by GNTV
Popular in Pictures
