-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA256 Udhay Shankar N said the following on 04/06/2007 10:59:
> You know your currency has become a 98-pound weakling when Kuwait can > kick sand on it. More like a 1/2-pound weakling. The GCC countries import all commodities, largely from Europe and Asia, so a weakening US dollar drives costs up and oil revenues down. All GCC countries have (unofficially) been talking of moving the US peg to a basket of currencies, but are trying to hold off as far as possible. Kuwait has a slightly volatile political situation, which pushed them to take the decision. It's highly likely Oman will follow. The others are holding back because they have unrealistic ambitions towards a unified GCC currency by 2010, which was to be pegged to the dollar as well. The UAE has had inflation estimated between 35% to 50% over the last three years, though the government claims 15%. This is now exacerbated by the dollar's demise. Ram -----BEGIN PGP SIGNATURE----- Version: GnuPG v1.4.6 (MingW32) iD8DBQFGY7wlRQoToz9njMgRCEs9AJ4wqWllPVM8glAP+0bpk3bOCNk6zACfUwxM fXYH5XSSxifc+7ch8vGofx4= =6L2P -----END PGP SIGNATURE-----
