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The agency "Fitch": the Gulf States will not abandon its peg to the dollar
9/23/15
See the credit rating agency "Fitch" that high oil prices and the dollar fell to affect the currency pegs to the US dollar, the Gulf states, but they ruled out the abolition of that policy.
Said Paul Gamble, director of the agency "Fitch" on Tuesday, September 22 / September: "There is pressure on the exchange rate peg in the region, but I do not expect any change in the exchange rate peg," noting that the cancellation would be a political decision and not economically.
And it connects the oil exporters in the Gulf, such as Saudi Arabia and the United Arab Emirates as part of their currencies to the dollar followed a long-standing arrangements were logical when commodity prices were high and the dollar weak.
Gamble said: "linking the exchange rate is the most important factor which is in fact only nominal mainstay for these economies is supported by huge reserves."
Currency pegs exporters of oil prices on the Gulf pressure is not limited, Kazakhstan has abandoned its peg to the dollar in August / August last, while Nigeria has already reduced the value of its currency twice in the last year has been re-so.
Saudi Arabia, linking the largest oil producer in the Organization of Petroleum Exporting Countries "OPEC", the riyal at 3.75 to the dollar while proving Emirates dirham at 3.6725 since 1997.
Show contracts used to determine the direction of betting on the exchange rate that Gulf currencies are under pressure growing, the dollar has lost contracts recorded against the riyal for one year, the highest level in 12 years in July / August, but remains much lower than the high levels recorded in early 1999, when oil prices were hovering near ten dollars a barrel level.
Gamble said "We have seen what is much worse," noting that hard currency reserves, which governments formed when oil prices were high certainly eroded.
Gamble said: "Central banks do not have the tools and is ready to move to the exchange rate regime is different from the link."
Saudi Arabia Fitch is classified at the level of "AA", but it adjusted its future outlook to negative at the end of August / August and attributed this to a decline in oil prices and increased spending.
The data released late August / August showed that Saudi Arabia withdraw from reserves to cover the deficit but the pace of decline slowed in the month of July since the government began issuing domestic bonds to cover part of the budget deficit.
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9/23/15
See the credit rating agency "Fitch" that high oil prices and the dollar fell to affect the currency pegs to the US dollar, the Gulf states, but they ruled out the abolition of that policy.
Said Paul Gamble, director of the agency "Fitch" on Tuesday, September 22 / September: "There is pressure on the exchange rate peg in the region, but I do not expect any change in the exchange rate peg," noting that the cancellation would be a political decision and not economically.
And it connects the oil exporters in the Gulf, such as Saudi Arabia and the United Arab Emirates as part of their currencies to the dollar followed a long-standing arrangements were logical when commodity prices were high and the dollar weak.
Gamble said: "linking the exchange rate is the most important factor which is in fact only nominal mainstay for these economies is supported by huge reserves."
Currency pegs exporters of oil prices on the Gulf pressure is not limited, Kazakhstan has abandoned its peg to the dollar in August / August last, while Nigeria has already reduced the value of its currency twice in the last year has been re-so.
Saudi Arabia, linking the largest oil producer in the Organization of Petroleum Exporting Countries "OPEC", the riyal at 3.75 to the dollar while proving Emirates dirham at 3.6725 since 1997.
Show contracts used to determine the direction of betting on the exchange rate that Gulf currencies are under pressure growing, the dollar has lost contracts recorded against the riyal for one year, the highest level in 12 years in July / August, but remains much lower than the high levels recorded in early 1999, when oil prices were hovering near ten dollars a barrel level.
Gamble said "We have seen what is much worse," noting that hard currency reserves, which governments formed when oil prices were high certainly eroded.
Gamble said: "Central banks do not have the tools and is ready to move to the exchange rate regime is different from the link."
Saudi Arabia Fitch is classified at the level of "AA", but it adjusted its future outlook to negative at the end of August / August and attributed this to a decline in oil prices and increased spending.
The data released late August / August showed that Saudi Arabia withdraw from reserves to cover the deficit but the pace of decline slowed in the month of July since the government began issuing domestic bonds to cover part of the budget deficit.
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