A report made by the House's financial, economic and industrial affairs committee suggested it was high time to reconsider depegging
from the US dollar.
would raise uncertainty about the prices of imported goods in the region, adding to inflationary pressures, according to Moody's.
of the riyal from the US dollar, seen by analysts as among the potential black swan or an unpredictable event in 2016, could curb the decline in Saudi Arabia's foreign reserves.
The yuan has been one of the strongest currencies in the world for years, as its nominal effective exchange rate has appreciated 46 percent since China initiated forex reforms by depegging
the yuan from the U.
The papers from that conference appear in this issue of the Cato Journal along with articles by Peter Bernholz on the recent depegging
of the Swiss franc and by Tyler Watts and Lukas Snyder on the resource costs of fiat versus commodity money.
Interestingly, rates on loans in euros increased by much less, suggesting that investors were more worried about the risk of euro depegging
rather than about credit risk (see figure 7).
In 2008, hot money flowed into dollar-pegged markets as speculators hoped to benefit from a depegging
of local currencies.
intentions to depegging
the local currency, Dirham, to the US Dollar nor
There is plenty of evidence today that the Gulf economies as a whole will neither consider devaluing or depegging
from the dollar as it is neither prudent nor serves an economic purpose," he said.
looks improbable says Abdulrahman Al-Attiyah
No change is likely soon, but we continue to believe that the arguments for depegging
are strong and anticipate they will gain traction as the temporarily aligned policy needs of the US and the Gulf diverge," he said.
The US dollar lost its position as the currency of choice for sukuk issuance this year, not only because of its weakness but also due to speculation about the depegging
of some GCC currencies from the dollar," said Mr Damak.