UAE will revalue currency by July says bank

The United Arab Emirates was 60 per cent likely to revalue its dollar-pegged dirham unilaterally or in conjunction with other Gulf oil producers in the first half of next year, an investment bank has predicted.

The UAE could allow its dirham to rise between 3 percent and 5 percent “if GCC countries decide to continue coordinating their policies,” the Egypt-based EFG-Hermes said in an annual country research report.


“A lack of consensus … could lead the UAE to move independently to a currency basket,” EFG said.

Gulf Arab oil producers are considering allowing their currencies to appreciate after agreeing to keep pegs to the dollar, UAE Central Bank Governor Sultan Nasser al-Suweidi was quoted as saying in London-based al-Hayat on December 15.

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