Additionally, some Gulf banks, particularly those in Qatar have to bring back substantial negative US dollar positions to below 25 per cent of shareholders' equity, protecting the banks from a potential de-peg
Six GCC countries have been in talks since 2001 to de-peg
from the dollar and create a single currency.
But any decision to de-peg
the rial from the dollar depends heavily on Oman's foreign reserves.
In the Argentinian case, they were able to de-peg
the peso from the US dollar but it still resulted in a currency collapse and banking crisis," he said.
Saudi Arabia has no plans to de-peg
its currency from the US dollar, the nation's central bank governor said Monday.
Were any currency to de-peg
from the dollar, they would soar in value overnight and income (arriving in dollars) would plummet.
China is unlikely to de-peg
the yuan anytime soon," Standard Chartered Bank said in a note to clients.
Geithner on Saturday delayed an April 15 report to Congress on whether China manipulates its yuan currency, pledging to work instead with Group of 20 members -- India and China included -- to persuade Beijing to de-peg
its yuan from the dollar.
Eventually, the only solution for them would be to de-peg
their currencies from the US dollar, hence the prospective formation of a brand new, freely floated currency to be used by the six GCC states.
MANAMA: Bahrain yesterday denied there were secret plans to de-peg
from the US dollar.
For instance, in 2007: EAEThere was too much talk going around relating to de-pegging the dirham, and we saw lot of interest from people trying to sell dollar and buy dirham in anticipation that it would de-peg
,Eo notes Rawashdeh.
With the increase in inflation and the fall ofAatheAadollar, speculation in the market intensified and expectationsAagrew that the GCC central banks will de-peg