Currency policy: Pressure builds on GCC dollar peg

Heads of state of the members of the Gulf Cooperation Council were set to discuss whether or not to alter their existing dollar peg when they met in Doha, Qatar, on December 3. According to a report entitled Gulf currencies: change needed and likely, written before the meeting by Gerard Lyons and Marios Maratheftis at Standard Chartered: “A revaluation of the GCC currencies is needed now and the region should begin preparations to shift their currencies away from a peg to the dollar to managing their currencies against a basket of currencies with which the Gulf trades.