FX market round up: Kuwait ends dollar peg
Euromoney June 2007
Inflation is rife throughout the Gulf region. Despite agreeing to join a single currency in 2010, and to follow the convergence criteria, Kuwait abandoned its dollar peg, and so the chance to join the currency union, on May 20. This move not only means that there are only four nations left to join a potential currency union – Oman bowed out of the 2010 deadline last year – it has also stirred up uncertainty among the GCC nations as to how they should tackle inflation. Now speculation is rife that other GCC nations might follow Kuwait’s lead and drop the dollar peg in favour of a basket of currencies that could help calm their overheated economies.
It seems, as...
