Experts urge fresh thinking on dollar peg

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.