However, they are expected to rely on fiscal consolidation measures to protect their balance of payments as they run the risk of having fluctuations in oil revenue if they take the de-pegging
route to have greater control over their interest rates.
According to the IIF, while there would be some benefit from a significant devaluation or de-pegging
in the form of boosting oil revenue in local currency, the short-term costs of de-pegging
would be significant.
Rory Fyfe, Head of Economics, Qatar National Bank, while answering a question on the possibility of de-pegging
the Qatari riyal, said the Qatar Central Bank has substantial foreign reserves including over $200 billion of liquid assets in its sovereign wealth fund, which would be enough to defend the peg for years.
The longstanding fixed exchange parity of the Gulf currencies with the dollar is not under threat as the costs of de-pegging
are "significant" in the short-term, according to the Institute of International Finance (IIF), an American economic think-tank.
It's not the Swiss central bank de-pegging
Now, Egypt is navigating its own liquidity crunch and budget woes-and just might make the same de-pegging
decision in the near future.
would generate greater government revenues by lifting the dollar oil revenues in local currency terms, it would also impose heavy costs, including rising inflation, a loss of policy credibility and additional volatility in oil revenues.
the yuan to the dollar is by way of preparation for the Fed rate increase in the following days, and gives the yuan more flexibility to move away against the dollar.
Petroleum engineer Waleed Al-Halw said that he believes oil and dollar are indispensible and none would risk to de-pegging
oil to dollar due to the strength of this currency on the international markets.
I cannot see the dirham de-pegging
from the dollar in the foreseeable future.
The UAE is not considering de-pegging
its currency from the US dollar despite the greenback's recent weakness, a Reuters report citing a central bank official said yesterday.
ABU DHABI: The United Arab Emirates is not worried about the dollar's weakness given low inflation, and is not considering de-pegging
its dirham from the greenback, a senior central bank official said on Monday.