Gulf States May End Dollar Pegs, Kuwait Minister Says

[katty]

more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aKafZEdY2xF8&refer=worldwide

Gulf States May End Dollar Pegs, Kuwait Minister Says (Update4)

By Fiona MacDonald and Matthew Brown

May 1 (Bloomberg) -- Gulf states are considering dropping their pegs to the dollar after the U.S. currency's decline stoked inflation across the region, Kuwaiti Finance Minister Mustafa al- Shimali said.

``Yes, there are some'' Gulf Cooperation Council states considering dropping their pegs to the dollar, which has fallen 13 percent against the euro in the last 12 months, al-Shimali said in an interview in Kuwait late yesterday without naming the countries. ``Some countries will do what we are doing.''

Al-Shimali's comments may restoke speculation of a change in Middle East currency systems that eased after the United Arab Emirates and Qatar last month ruled out any revaluation or dropping the dollar peg in the short term. The issue will remain a key issue as long as inflation remains high.

``Inflation is rising in the Gulf to a great extent because of loose monetary policy,'' said Marios Maratheftis, head of research for Standard Chartered Plc in the Middle East in a telephone interview from Dubai.

[villager]

1. "Mission accomplished." n/t

[rainy]

2. Is this what the US government was trying to stop to begin with?

Now it is all backfiring.

[dixiegrrrrl]

4. Yeah, I think it was

quite a discussion yesterday on this at

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3290376

[katty]

5. yes, many early articles on this--follow the $

[Hydra]

3. No longer a petrodollar world

Wah.

Most Americans took it as a matter of course that we were a world superpower. Looks like we'll have to work at it, now.