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The Gulf currencies are literally pegged to the Dollar. It's a fixed rate for the last 5 years that I had dealings with them (Qatar, UAE, Bahrain, Kuwait etc).
by yannis 17y ago
The Gulf currencies are literally pegged to the Dollar. It's a fixed rate for the last 5 years that I had dealings with them (Qatar, UAE, Bahrain, Kuwait etc). But I agree nothing stops oil prices sky-rocketing.
I must say it's nice to be on a forum where I can reasonably expect people to know such references
Best forums on the web on any topic and to top it very civilized:)
- hga 17y agoSorry about that, I didn't know the Gulf states had actual pegs (they were omitted from a list I'd recently read) and therefore misread your starting sentence. However if the US$ started a sharp secular decline unrelated to anything happening in the Gulf (suppose the Fed uses QE to fund the Federal deficit for too long), they could change their pegs and I would imagine that in and of itself wouldn't be viewed negatively. (Of course in such an event there would be so much financial chaos... well, "Sufficient unto the day is the evil thereof.")