Intimidated by Inflation, Gulf States Consider Cutting Ties with Dollar

Even with a bit of a rebound, of late, the dollar is down more than 7% against the euro in the past six months, 12% in the past 12 months and nearly 28% in the last 54 months. The decline has been so drastic countries that have pegged their currencies to the beleaguered greenback are beginning to consider alternatives. But Gulf States , particularly, have been torched by the dollar’s decline . About 18% of inflation in the United Arab Emirates is caused by the Gulf state’s currency peg to the dollar, Emirates Business 24/7 reported, citing the Dubai Chamber of Commerce & Industry’s… SHARETHIS.addEntry({ title: "Intimidated by Inflation, Gulf States Consider Cutting Ties with Dollar", url: "http://jutiagroup.com/2008/05/02/intimidated-by-inflation-gulf-states-consider-cutting-ties-with-dollar/" });