Fitch: Gulf States will not abandon its peg to the dollar

Author: bian7 on: Tuesday 09/22/2015 20:05




BAGHDAD / WAP / follow-up / see the credit rating agency "Fitch" that high oil prices and the dollar fell to affect the currency pegs to the US dollar, the Gulf states, but they ruled out the abolition of that policy.

Said Paul Gamble, director of the agency "Fitch, Tuesday, that" There is pressure on the exchange rate peg in the region, but I do not expect any change in the exchange rate peg, "noting that" the cancellation would be a political decision, not an economic ".

And connects the oil exporters in the Gulf, such as Saudi Arabia and the UAE in the framework of their currencies to the dollar followed a long-standing arrangements were logical when commodity prices were high and the dollar weak.

Gamble said that "linking the exchange rate is the most important factor, which is the mainstay nominal only to those economies which is supported by huge reserves."

Currency pegs exporters of oil prices on the Gulf pressure is not limited, Kazakhstan has abandoned its peg to the dollar in the month of August, while Nigeria has already reduced the value of its currency twice in the last year has been re-so.

Show contracts used to determine the direction of betting on the exchange rate, that Gulf currencies are under pressure growing, the dollar has lost contracts recorded against the riyal for one year, the highest level in 12 years in August, but remains much lower than the high levels recorded in early 1999, when oil prices were hovering near Ten dollars a barrel level.


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