Single currency takes a hit
Kuwait's decision to revalue its currency and drop the dollar peg on 20 March caught central bankers across the region by surprise. It also sent out a strong signal over the diminishing likelihood of a single GCC currency by 2010. But while Kuwait claims the policy change is designed to tackle inflation, by reducing the cost of imports, most observers say it is unlikely to keep prices down.
Kuwait's decision to revalue its currency and drop the dollar peg on 20 March caught central bankers across the region by surprise. It also sent out a strong signal over the diminishing likelihood of a single GCC currency by 2010. But while Kuwait claims the policy change is designed to tackle inflation, by reducing the cost of imports, most observers say it is unlikely to keep prices down.
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