| From Zawya.comOil producers in the Gulf are unlikely to revalue their currencies against the US dollar before they launch their landmark monetary union andecide on the common currency unit for that scheme, experts said. Although the dollar's recovery over the past few weeks could weaken speculation about an appreciation of the GCC currencies, economists said the increase would not affect any revaluation plans.
"An appreciation of the GCC currencies has nothing to do now with the recovery or the decline in the US dollar as such plans have become closely linked to the common currency under discussion," Mohammed Al Asumi, a Gulf economist, told Emirates Business.
"Any currency changes in the GCC are now associated more with the monetary policy than the dollar movements. I don't expect any major changes in the existing currencies before the creation of the monetary union. As for the common currency, my feeling is that it will likely be pegged to a basket of currencies, in which the US dollar will be the main component.".... Full Article: Source
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