By Johanna Treeck
WASHINGTON (MNI) – The recent forex volatility will not accelerate
a move in the Gulf region away from the dollar peg toward a currency
basket, the director general of the Arab Monetary Fund told Market News
International on Saturday
“I do not think we will see a change away from the dollar peg,”
Jassim Al-Mannai said on the sidelines of the International Monetary
Fund and World Bank meetings.
“When we reach monetary union within the Gulf Cooperation Council
there they might consider a different approach,” he added. “Not for the
time being.”
Al-Mannai noted that central banks and finance ministries in the
region have already diversified portfolios. “They have not waited for
this situation to make a diversification.”
Nevertheless, he expressed concerns over recent volatility on forex
markets that have propelled the debate over a “currency war” to the top
of the inofficial agenda here. “Volatility is not good for anyone. I
don’t think it is in the interest of any country.”
Al-Mannai also said that as long as the oil prices remain above $60
per barrel, the region’s growth outlook remains favorable and that
inflation concerns remain contained.
— Frankfurt bureau: +49-69-720 142. Email: jtreeck@marketnews.com —
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