Wednesday 09, April 2008 by
Swimming against the currency?
A new report by NCB Capital estimates that the GCC currencies have depreciated by over 37 per cent in nominal terms since 2002 due to their peg to the dollar and discusses how the depreciating dollar is affecting liquidity, interest rates and inflation. The report explains how the significant changes in the macro environment in recent years have changed key conditions required for hard currency pegs, increasingly making it look like trying to fit a square peg to a round hole.
