Nov 27 2007
U.A.E. Considering Dropping Dollar Peg
The United Arab Emirates is considering ending its 30-year peg to the dollar, citing falling currency concerns that are driving inflation and an increasing price of imports for the country. Bloomberg covered the story earlier this month.
The move would not be unprecedented. Kuwait dropped its U.S. Dollar peg in May. OPEC is also considering dropping the dollar in favor of a basket of currencies, as we’ve written about earlier this month. The U.A.E.’s move is unlikely to upset the U.S. applecart just as the OPEC move is similarly unlikely to.
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