GCC Trade Weighted Peg By 2010-12?

January 2007 | Market Strategy

BMI View : We believe that a GCC currency union will take place in either 2010, or potentially 2012. However we have reservations about the long-term sustainability of a single currency, which we will analyse further in a forthcoming piece. Here, we explore the likely exchange rate arrangement that may emerge following currency union, which, with the UAE leading the push for reform, could be a currency peg to a trade weighted basket, rather than to the US$.

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