Gulf oil producers are considering revaluing their dollar-pegged currencies together and will hold talks on a change in the exchange rates "in the next few days", Foreign Minister Shaikh Khalid bin Ahmed Al Khalifa said yesterday.
They are working together to shift exchange rates, although the GCC countries will keep their dollar pegs, he said on the sidelines of the Manama Dialogue security conference.
MANAMA: Gulf oil producers are considering revaluing their dollar-pegged currencies together and will hold talks on a change in the exchange rates "in the next few days", Foreign Minister Shaikh Khalid bin Ahmed Al Khalifa said yesterday.
They are working together to shift exchange rates, although the GCC countries will keep their dollar pegs, he said on the sidelines of the Manama Dialogue security conference.
"That's being discussed between the central banks and there will be a meeting between the finance ministers and the central bank governors in the next few days."
Shaikh Khalid declined to say where the meeting would take place.
"That will not really change a lot. It will not mean a big change."
The dollar pegs force the region to shadow US interest rates. Gulf central banks are cutting rates in tandem with the US Federal Reserve to prevent currency appreciation, ignoring inflation at home which is running at its highest this decade.
With more Fed cuts expected and the dollar hitting record lows on global markets, investors expect the Gulf states to eventually give up on their pegs and allow their currencies to appreciate.
