GCC urged to keep dollar peg
Analysts say the US dollar still dominates world finance.
Analysts and officials taking part in the AMF-World Bank economic conference yesterday called on Gulf countries to maintain the dollar peg.
They said the US dollar is still the currency dominating world finance and that the rate of the US currency in the world reserves is 62.1 per cent against 27.4 per cent for the euro, 4.3 per cent for the pound sterling, three per cent for the Japanese yen, and 3.2 per cent for other currencies.
The conference, which concluded yesterday, said Gulf countries have some of the criteria needed for the establishment of a unified currency.
It highlighted the need to boost economic and financial integration among Arab countries to increase inter-Arab flows. Vice-Governor of the Saudi Arabian Monetary Agency Dr Abdul Rahman Al Hamidy said oil exports from the Arab region make the peg more important for the world economy.
He said the Arab World is a major receiving and exporting destination of capitals as the region's oil reserves have 40 per cent of the total world's known reserves . Arab countries have recovered from the impact of the global crisis, he added.
The International Monetary Fund expects to achieve an average growth of 4.2 per cent in 2011 and 4.6 per cent in 2012, he said.
emirates24/7
http://www.business24-7.ae/economy/regional-economy/gcc-urged-to-keep-dollar-peg-2010-06-23-1.258542
