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| Arabia |
| Top Bahraini legislator calls for depegging dinar from US dollar |
| 2007-12-03 |
| Chairman of the Bahraini Council of Representatives Khalifa Al-Dhahrani called Saturday for depegging his country's currency from the US dollar and to benefit from Kuwait's experience on this matter. In a statement published by the daily Akhbar Al-Khaleej, he said the constant depreciation of the US dollar was harming the Bahraini dinar in international markets, which compelled the depegging of the dinar from the dollar and then pegging the Bahraini currency to a basket of major currencies. He called for using the Kuwaiti experience as a model — the Gulf state had reversed its decision of 2003 to peg its currency to the US dollar, which was of benefit to the value of the Kuwaiti dinar. The chairman noted the economic similarities between Kuwait and Bahrain, explaining that as his country was an importer of many goods, the depreciation of its currency in international markets was bringing great financial losses. The best means to avoid this is to peg the Bahraini dinar to a basket of major currencies, Al-Dhahrani reiterated. He also stressed the need for conducting a detailed and thorough study on the advantages and disadvantaged of depegging the dinar from the dollar, and what the Bahraini economy could achieve on the short and long terms. |
| Posted by:Seafarious |
| #2 Yes, that's a danger. But there is an upside. |
| Posted by: lotp 2007-12-03 12:32 |
| #1 RENSE > USA IS NOW [cheap]BARGAIN BASEMENT. |
| Posted by: JosephMendiola 2007-12-03 03:06 |