Gulf union’s delay spurs unilateral revaluation

Dubai: Gulf Arab oil producers are more likely to revalue their dollar-pegged currencies unilaterally and the longer plans to introduce a single currency are delayed, US investment bank Morgan Stanley & Co. said.

Saudi Arabia, the United Arab Emirates and four other members of the Gulf Cooperation Council (GCC) are likely to miss a 2010 deadline for a single currency by five years, Morgan Stanley said in a report.


The GCC also includes Qatar, Kuwait, Oman and Bahrain.

“The longer the union is delayed, the more tempted and likely some Gulf members will be to contemplate making adjustments to their policy regimes,” the bank said.

Reuters