Quote:
Originally Posted by anil
......Apart from the USD peg issue, which I dont think will be dropped, there are also the discussions about the single GCC currency in 2010. Do some google searches on the news to see.
Personally, I think a single currency will strenghen the region and result in more investment which would, hopefully, cause property inflation.
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From what I read, unpegging from the USD is almost impossible mainly because the rulers of these gulf countries own billion of dollars of assets in US so unpegging means the value of these assets will reduce. Too bad for their countries as long as these rulers don't lose a penny.
As for the single GCC currency, again it is just talk, there are so many issues that these guys need to resolve between themselves before agreeing to single GCC currency, I don't think this will happen in our life time, maybe next century.
Kimo