King comments: "They de-pegged
from the dollar last year and the currency devalued 96%, so it's chaos, but because it's so difficult to get kit into country, and to get kit out, and because we are there, on the ground, our profit margins over there are ridiculous.
Kuwait is the only Gulf state that de-pegged
a few years ago and pegged to a basket of currencies.
Yuan is an attractive currency to investors because it has appreciated against the US dollar since being de-pegged
from the US dollar in June 2010 and there are pressure for further appreciation.
Hong Kong has become China's stage for internationalizing the yuan, which was de-pegged
from the US dollar last month.
Hong Kong has become China's stage for internationalising the yuan, which was de-pegged
from the U.
The Chinese may also have de-pegged
the yuan as a way to head off inflationary pressures within their own country, particularly in light of the serious bubble that has developed in the domestic property market, as well as worker agitation for higher wages.
Oman had already said it will not join the monetary union, and Kuwait broke GCC ranks in 2007 as it de-pegged
its currency from the US dollar.
To assume that the private sector will maintain its savings in dirhams if the dirham is de-pegged
to the dollar is to ignore an important source of potential disruption to the economy.
From 2001 to 2008, the dollar lost an average of 40% against a basket of currency, a reason why Kuwait de-pegged
its currency and adopted the basket of currency in 2007.
He said that what was necessary for a single currency, that was de-pegged
from the dollar, was the development of a government bond market.
The Syrian Central Bank de-pegged
its currency with the US dollar in August of 2007.
In a bid to fight soaring inflation, Kuwait in May last year de-pegged
the dinar from the US dollar and linked it to a basket of currencies.