GCC considers currency revaluation

17 November 2007
The GCC will discuss a proposal to revalue their currencies at the next GCC summit in December, according to the organisation’s secretary-general Abdul Rahman al-Attiyah. However, Saudi Arabia has already said it will not change its dollar peg.

Saudi Finance Minister Ibrahim Al Assaf said on 18 November the country has “no plan to use a basket of currencies for the Saudi riyal and we do not have a plan to revalue”, while separately Saudi Arabian Monetary Authority (central bank) governor Hamad Saud al-Sayari said there would be no change in policy.

However, Al-Attiyah said that the case for revaluation would be presented to GCC leaders at the next meeting on 3-4 December and they would decide how to take the issue forward domestically.

The December meeting is expected to be concluded with a decision on the future of the GCC’s single currency project, which has been thrown into doubt after the collapse of the 2010 deadline.

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