The DPE, which is responsible for proposing economic policy for the emirate of Abu Dhabi, says in a report: “The dollar is falling relentlessly and oil prices are skyrocketing.

“This new reality calls for a rethink of monetary policies. GCC states need to peg against a basket of world currencies, taking into account the latest trading patterns which tend to be bent towards the euro zone and Asia.”

However, the report makes clear that the dollar peg has served the region well for decades, and that abandoning it will not be easy.

It also reiterates that current government policy is to stick with the dollar peg but adds that doing so, and the ensuing inflationary effects, would “definitely affect the single currency union”.